Helen of Troy Ltd (HELE)
Debt-to-assets ratio
| Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | Feb 29, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 659,421 | 928,348 | 811,332 | 341,746 | 337,421 |
| Total assets | US$ in thousands | 2,838,620 | 2,913,720 | 2,823,450 | 2,263,490 | 1,903,880 |
| Debt-to-assets ratio | 0.23 | 0.32 | 0.29 | 0.15 | 0.18 |
February 29, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $659,421K ÷ $2,838,620K
= 0.23
The debt-to-assets ratio of Helen of Troy Ltd has fluctuated over the past five years, ranging from 0.15 to 0.32. In general, a lower ratio indicates that the company relies less on debt to finance its assets, which can be viewed positively as it suggests lower financial risk.
Comparing the latest ratio of 0.23 to previous years, we observe an improvement from 0.32 in the prior year. This decrease indicates that the company has reduced its reliance on debt financing relative to its asset base, potentially reflecting a more conservative financial position or an increase in asset utilization.
It is important to note that the debt-to-assets ratio should be analyzed in conjunction with other financial ratios and metrics to gain a comprehensive understanding of Helen of Troy Ltd's overall financial health and risk profile.