H&R Block Inc (HRB)
Debt-to-equity 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-equity ratio | 16.46 | 46.44 | 7.03 | 4.23 | 40.06 |
June 30, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,491,100K ÷ $90,594K
= 16.46
The debt-to-equity ratio of H&R Block Inc has shown significant fluctuations over the past five years. As of June 30, 2024, the ratio stands at 16.46, indicating that the company has $16.46 in debt for every $1 of equity. This represents a notable decrease compared to the previous year, where the ratio was 46.44.
The sharp decrease in the debt-to-equity ratio from 2023 to 2024 suggests that H&R Block Inc has possibly reduced its reliance on debt financing and improved its equity position. It is worth noting that in 2022, the ratio was relatively low at 7.03, signaling a healthier balance between debt and equity.
On the contrary, the company experienced a significant spike in its debt-to-equity ratio in 2020, reaching 40.06, indicating a high level of debt relative to equity. This could have raised concerns about the company's financial leverage and ability to meet its debt obligations.
Overall, monitoring the trend of H&R Block Inc's debt-to-equity ratio provides insights into its capital structure and financial risk management practices. A lower ratio typically indicates a less risky financial position, while a higher ratio may suggest higher financial leverage and potential solvency issues.
Peer comparison
Jun 30, 2024