Griffon Corporation (GFF)
Debt-to-equity 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-equity ratio | 6.74 | 6.71 | 7.80 | 5.02 | 4.63 | 4.58 | 3.18 | 2.86 | 3.27 | 1.74 | 2.20 | 1.28 | 1.28 | 1.33 | 1.37 | 1.40 | 1.48 | 2.21 | 2.55 | 2.30 |
September 30, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,515,900K ÷ $224,888K
= 6.74
The debt-to-equity ratio of Griffon Corporation has shown fluctuations over the past several quarters. In the most recent period, as of September 30, 2024, the ratio stands at 6.74, indicating that the company has a relatively high level of debt in comparison to its equity. This suggests that Griffon Corporation relies significantly on debt financing to support its operations and growth.
Looking back over the trend, the ratio has been gradually increasing since the end of 2022, when it was at a relatively lower level of 1.28. This increase may signal a shift towards a more leveraged capital structure, which could increase the company's financial risk.
It is important to note that a higher debt-to-equity ratio can indicate higher financial leverage and greater risk, as the company may have higher interest payments and debt obligations to fulfill. This could potentially impact the company's financial stability and ability to withstand economic downturns.
Overall, Griffon Corporation's increasing debt-to-equity ratio warrants further analysis of its debt management strategies and overall financial health to ensure sustainable growth and profitability in the long term.