Helen of Troy Ltd (HELE)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 1,637,440 | 1,488,810 | 1,327,340 | 1,239,350 | 1,161,720 |
| Debt-to-equity ratio | 0.40 | 0.62 | 0.61 | 0.28 | 0.29 |
February 29, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $659,421K ÷ $1,637,440K
= 0.40
Helen of Troy Ltd's debt-to-equity ratio has shown fluctuations over the past five years. The ratio was at its lowest in 2021 at 0.28 and experienced an increase to 0.29 in 2020. Subsequently, there was a notable rise in 2022 to 0.61, followed by a decrease to 0.62 in 2023. The most recent data for 2024 indicates a debt-to-equity ratio of 0.40.
The trend in the debt-to-equity ratio suggests that Helen of Troy Ltd has been actively managing its capital structure and leverage levels over the years. A lower ratio typically indicates a lower level of debt relative to equity, which can be viewed positively as it signifies a lower financial risk. On the other hand, a higher ratio may imply higher financial risk due to a larger proportion of debt in the capital structure.
The fluctuating nature of the debt-to-equity ratio may reflect changes in the company's financing decisions, such as taking on more debt for growth opportunities or paying down existing debt to reduce risk. It is essential for investors and stakeholders to monitor these changes to assess the company's financial health and risk profile.