H&R Block Inc (HRB)
Debt-to-capital ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,491,100 | 1,488,970 | 1,486,880 | 1,490,040 | 2,845,870 |
| Total stockholders’ equity | US$ in thousands | 90,594 | 32,064 | 211,631 | 352,401 | 71,041 |
| Debt-to-capital ratio | 0.94 | 0.98 | 0.88 | 0.81 | 0.98 |
June 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,491,100K ÷ ($1,491,100K + $90,594K)
= 0.94
The debt-to-capital ratio of H&R Block Inc has fluctuated over the past five years, ranging from 0.81 to 0.98. A higher ratio indicates a higher level of financial risk, as it suggests that the company relies more on debt financing compared to its equity.
In the most recent period, as of June 30, 2024, the debt-to-capital ratio stood at 0.94, slightly lower than the previous year's ratio of 0.98. This indicates a slight improvement in the company's capital structure and a reduction in its reliance on debt for financing its operations.
Overall, while the fluctuation in the debt-to-capital ratio reflects changes in the company's capital structure and leverage over the years, it is essential to assess other financial metrics and factors in conjunction with this ratio to gain a comprehensive understanding of H&R Block Inc's financial health and risk profile.
Peer comparison
Jun 30, 2024