Jacobs Solutions Inc. (J)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 4,549,470 | 6,546,220 | 6,060,060 | 5,940,040 | 5,815,710 |
| Debt-to-equity ratio | 0.30 | 0.43 | 0.55 | 0.48 | 0.29 |
September 30, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,348,590K ÷ $4,549,470K
= 0.30
The debt-to-equity ratio of Jacobs Solutions Inc. has fluctuated over the past five years. In 2020, the ratio was 0.29, indicating that the company had a lower level of debt relative to its equity. This was followed by a slight increase in 2021 to 0.48 before a significant jump to 0.55 in 2022, suggesting a higher reliance on debt financing compared to equity.
However, in 2023, there was a decrease in the ratio to 0.43, indicating a reduction in the proportion of debt in the company's capital structure. The trend continued in 2024 with a further decrease to 0.30, signaling a more conservative approach towards debt utilization relative to equity.
Overall, the decreasing trend in the debt-to-equity ratio from 2022 to 2024 indicates a positive shift towards a stronger financial position with a lower reliance on debt financing. This could potentially reduce financial risk for Jacobs Solutions Inc. and improve its overall stability and solvency.
Peer comparison
Sep 30, 2024