Hillenbrand Inc (HI)
Debt-to-capital ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,872,400 | 1,990,400 | 1,222,100 | 1,212,900 | 1,516,300 |
| Total stockholders’ equity | US$ in thousands | 1,423,000 | 1,630,300 | 1,082,900 | 1,209,600 | 1,059,000 |
| Debt-to-capital ratio | 0.57 | 0.55 | 0.53 | 0.50 | 0.59 |
September 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,872,400K ÷ ($1,872,400K + $1,423,000K)
= 0.57
Hillenbrand Inc's debt-to-capital ratio has fluctuated over the past five years. In 2020, the ratio was at its highest point at 0.59, indicating that a significant portion of the company's capital structure was comprised of debt. Over the subsequent years, the ratio decreased steadily, reaching its lowest point in 2021 at 0.50. This reduction suggests that the company may have taken steps to reduce its reliance on debt financing and strengthen its capital position.
However, in 2022 and 2023, the debt-to-capital ratio started to increase again, reaching 0.53 and 0.55, respectively. This uptrend indicates that Hillenbrand Inc may have increased its debt levels relative to its capital base during these years. In 2024, the ratio further increased to 0.57, signaling a potential continuation of this trend.
Overall, the fluctuation in Hillenbrand Inc's debt-to-capital ratio highlights the company's changing capital structure and its use of debt as a financing source. It is important for stakeholders to monitor this ratio to assess the company's financial risk and leverage levels over time.
Peer comparison
Sep 30, 2024