Insteel Industries Inc (IIIN)
Debt-to-equity ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 381,505 | 389,744 | 302,038 | 264,803 | 246,017 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
September 30, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $381,505K
= 0.00
Insteel Industries, Inc. has consistently reported a debt-to-equity ratio of 0.00 over the past five years. This indicates that the company has not utilized any debt to finance its operations and has relied solely on equity to support its assets and investments. A debt-to-equity ratio of 0.00 suggests that the company has a conservative capital structure, with a low level of financial risk and a higher degree of financial stability. However, it's important to note that a very low debt-to-equity ratio may also indicate underutilization of debt as a potential source of cheaper financing, which could limit the company's ability to leverage its capital structure for growth opportunities. Nonetheless, the consistent 0.00 debt-to-equity ratio implies that Insteel Industries has been managing its capital structure prudently and maintaining a healthy balance between debt and equity in its overall financial strategy.
Peer comparison
Sep 30, 2023