Helen of Troy Ltd (HELE)
Debt-to-capital ratio
Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Long-term debt | US$ in thousands | 659,421 | 729,413 | 838,668 | 830,922 | 928,348 | 1,059,590 | 1,148,870 | 1,090,950 | 811,332 | 445,584 | 470,335 | 509,090 | 341,746 | 438,497 | 298,247 | 322,999 | 337,421 | 242,363 | 299,309 | 319,255 |
Total stockholders’ equity | US$ in thousands | 1,637,440 | 1,586,280 | 1,501,880 | 1,514,910 | 1,488,810 | 1,457,070 | 1,398,350 | 1,356,420 | 1,327,340 | 1,354,960 | 1,267,820 | 1,202,080 | 1,239,350 | 1,210,440 | 1,308,530 | 1,221,750 | 1,161,720 | 1,161,680 | 1,087,380 | 1,036,180 |
Debt-to-capital ratio | 0.29 | 0.31 | 0.36 | 0.35 | 0.38 | 0.42 | 0.45 | 0.45 | 0.38 | 0.25 | 0.27 | 0.30 | 0.22 | 0.27 | 0.19 | 0.21 | 0.23 | 0.17 | 0.22 | 0.24 |
February 29, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $659,421K ÷ ($659,421K + $1,637,440K)
= 0.29
The debt-to-capital ratio of Helen of Troy Ltd has shown some fluctuations over the past few quarters. The ratio indicates the proportion of debt in the company's capital structure. A lower ratio generally indicates lower financial risk, as it suggests that the company relies more on equity financing rather than debt financing.
Looking at the trend in Helen of Troy Ltd's debt-to-capital ratio, we can observe that it peaked at 0.45 in the last two quarters of 2022 and stayed relatively high throughout that period. However, in the following quarters of 2023, the ratio began to decline, reaching a low of 0.17 in May 2019. This significant decrease may suggest that the company has been reducing its reliance on debt financing and shifting towards a more balanced capital structure.
Overall, the declining trend in Helen of Troy Ltd's debt-to-capital ratio indicates a positive development in terms of managing its debt levels and potentially reducing financial risk. It is important for investors and stakeholders to continue monitoring this ratio to assess the company's financial health and stability in the long term.