Hillenbrand Inc (HI)
Debt-to-equity 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-equity ratio | 1.32 | 1.22 | 1.13 | 1.00 | 1.43 |
September 30, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,872,400K ÷ $1,423,000K
= 1.32
Hillenbrand Inc's debt-to-equity ratio has shown fluctuations over the past five years. The ratio increased from 1.00 in 2021 to 1.43 in 2020, indicating a higher reliance on debt financing relative to equity. However, in the subsequent years, the ratio decreased to 1.13 in 2022 and further to 1.22 in 2023. This suggested a more balanced capital structure with a lower proportion of debt compared to equity.
In 2024, the debt-to-equity ratio for Hillenbrand Inc rose to 1.32, signifying an increase in the amount of debt relative to equity. This could indicate a potential higher financial risk as the company may have taken on more debt to fund its operations or investments.
Overall, while fluctuations in the debt-to-equity ratio are normal for businesses, it is essential for stakeholders to monitor such changes to assess the company's financial health and risk profile. An increasing ratio may signal higher financial leverage and interest burdens, whereas a decreasing ratio could reflect a stronger equity position and lower reliance on debt financing.
Peer comparison
Sep 30, 2024