Griffon Corporation (GFF)
Debt-to-capital ratio
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,515,900 | 1,499,210 | 1,577,210 | 1,430,240 | 1,459,900 | 1,536,420 | 1,491,560 | 1,507,680 | 1,561,000 | 1,574,700 | 1,941,720 | 1,037,760 | 1,033,200 | 1,042,610 | 1,043,860 | 1,037,410 | 1,037,040 | 1,123,360 | 1,216,230 | 1,137,130 |
| Total stockholders’ equity | US$ in thousands | 224,888 | 223,510 | 202,186 | 285,022 | 315,244 | 335,706 | 468,311 | 526,848 | 477,570 | 906,315 | 883,214 | 812,385 | 807,158 | 785,341 | 764,431 | 740,047 | 700,151 | 508,455 | 476,454 | 494,693 |
| Debt-to-capital ratio | 0.87 | 0.87 | 0.89 | 0.83 | 0.82 | 0.82 | 0.76 | 0.74 | 0.77 | 0.63 | 0.69 | 0.56 | 0.56 | 0.57 | 0.58 | 0.58 | 0.60 | 0.69 | 0.72 | 0.70 |
September 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,515,900K ÷ ($1,515,900K + $224,888K)
= 0.87
The debt-to-capital ratio of Griffon Corporation has shown fluctuations over the period under review. From December 2019 to September 2024, the ratio has ranged between 0.56 to 0.89. The ratio indicates the proportion of the company's capital that is funded by debt, with higher ratios indicating higher levels of debt relative to total capital.
In general, a higher debt-to-capital ratio suggests a higher risk as the company relies more on debt financing. The trend in Griffon Corporation's debt-to-capital ratio shows some volatility, with a peak in March 2024 at 0.89, followed by fluctuations within the range of 0.74 to 0.87 in the subsequent periods.
It is essential to further analyze the reasons behind these fluctuations in the debt-to-capital ratio to assess the overall financial health and risk profile of Griffon Corporation. Factors such as changes in debt levels, capital structure adjustments, or operational performance may have influenced these variations over time. Monitoring this ratio along with other financial metrics can provide a more comprehensive understanding of the company's leverage and financial stability.