Jacobs Solutions Inc. (J)
Debt-to-assets ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,348,590 | 2,813,470 | 3,357,260 | 2,839,930 | 1,676,940 |
| Total assets | US$ in thousands | 11,759,000 | 14,617,100 | 14,660,400 | 14,632,600 | 12,354,400 |
| Debt-to-assets ratio | 0.11 | 0.19 | 0.23 | 0.19 | 0.14 |
September 30, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,348,590K ÷ $11,759,000K
= 0.11
The debt-to-assets ratio of Jacobs Solutions Inc. has been showing a declining trend over the past five years, indicating a strengthening financial position in terms of debt management. The ratio decreased from 0.14 in 2020 to 0.11 in 2024.
A lower debt-to-assets ratio signifies that the company relies less on debt financing and has a higher proportion of assets financed by equity. This can be a positive signal to investors and creditors as it indicates lower financial risk and better financial stability.
The decreasing trend in the debt-to-assets ratio suggests that Jacobs Solutions Inc. has been effectively managing its debt levels relative to its total assets. This could indicate prudent financial management decisions, potentially leading to improved profitability and sustainable growth prospects.
Overall, the declining debt-to-assets ratio of Jacobs Solutions Inc. over the past five years reflects a positive trend in the company's financial health and indicates a strengthening balance sheet position.
Peer comparison
Sep 30, 2024