Jacobs Solutions Inc. (J)
Debt-to-capital ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,813,470 | 3,357,260 | 2,839,930 | 1,676,940 | 1,201,240 |
| Total stockholders’ equity | US$ in thousands | 6,546,220 | 6,060,060 | 5,940,040 | 5,815,710 | 5,714,690 |
| Debt-to-capital ratio | 0.30 | 0.36 | 0.32 | 0.22 | 0.17 |
September 30, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,813,470K ÷ ($2,813,470K + $6,546,220K)
= 0.30
The debt-to-capital ratio of Jacobs Solutions Inc. has fluctuated over the past five years. In September 2023, the ratio stood at 0.30, indicating that 30% of the company's capital structure was financed through debt. This represents a decrease from the previous year, where the ratio was 0.36.
Comparing the most recent ratio to that of the previous years, we observe an upward trend starting from 0.17 in September 2019 to 0.30 in September 2023, suggesting an increase in the proportion of debt used to finance the company's operations over the period.
While a higher debt-to-capital ratio may indicate higher financial risk due to increased reliance on debt financing, it can also signal potential growth opportunities as the company may be using debt to fund expansion or investments.
Additional analysis of Jacobs Solutions Inc.'s overall financial health and performance would be necessary to fully assess the implications of the fluctuating debt-to-capital ratio.
Peer comparison
Sep 30, 2023