Korn Ferry (KFY)
Debt-to-capital ratio
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 396,946 | 396,194 | 395,477 | 394,794 | 394,144 |
| Total stockholders’ equity | US$ in thousands | 1,733,060 | 1,648,070 | 1,544,350 | 1,366,390 | 1,221,380 |
| Debt-to-capital ratio | 0.19 | 0.19 | 0.20 | 0.22 | 0.24 |
April 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $396,946K ÷ ($396,946K + $1,733,060K)
= 0.19
The debt-to-capital ratio of Korn Ferry has been relatively stable over the past five years, ranging from 0.19 to 0.24. This ratio indicates the proportion of the company's capital that is financed through debt. A lower ratio suggests that the company relies less on debt financing and may have a stronger financial position, while a higher ratio may indicate higher financial risk due to increased debt levels.
In Korn Ferry's case, the decreasing trend in the debt-to-capital ratio from 0.24 in 2020 to 0.19 in 2024 suggests that the company has been gradually reducing its reliance on debt financing in relation to its total capital structure. This could be a positive sign as it may signal improved financial health and reduced financial risk over time. However, it is important to consider other factors such as the overall level of debt, interest rates, and the company's ability to generate sufficient cash flow to repay its debt obligations when analyzing the impact of the debt-to-capital ratio.
Peer comparison
Apr 30, 2024