Hillenbrand Inc (HI)
Debt-to-capital ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,990,400 | 1,222,100 | 1,212,900 | 1,516,300 | 619,500 |
| Total stockholders’ equity | US$ in thousands | 1,630,300 | 1,082,900 | 1,209,600 | 1,059,000 | 754,100 |
| Debt-to-capital ratio | 0.55 | 0.53 | 0.50 | 0.59 | 0.45 |
September 30, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,990,400K ÷ ($1,990,400K + $1,630,300K)
= 0.55
The debt-to-capital ratio of Hillenbrand Inc has shown fluctuations over the past five years. In 2023, the ratio increased to 0.55 from 0.53 in 2022, indicating that the company's reliance on debt in its capital structure has slightly increased. However, compared to 2021, where the ratio was 0.50, the current ratio indicates a higher level of debt relative to capital. It's worth noting that in 2020, the ratio was 0.59, signifying a higher proportion of debt in the company's capital structure, while in 2019, the ratio was 0.45, reflecting a lower level of debt.
The increasing trend in the debt-to-capital ratio from 2021 to 2023 could be a cause for concern, as it suggests that the company may be taking on more debt relative to its capital base. This could potentially lead to higher financial leverage and risk for the company. However, it's important to consider other factors such as the company's cash flow, profitability, and industry benchmarks when assessing the impact of this trend on the company's financial health.
Peer comparison
Sep 30, 2023