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.