Kenvue Inc. (KVUE)
Debt-to-equity ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | ||
|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 8,000,000 | 7,400,000 | 7,800,000 | 8,000,000 |
| Total stockholders’ equity | US$ in thousands | 11,211,000 | 10,893,000 | 11,131,000 | 20,282,000 |
| Debt-to-equity ratio | 0.71 | 0.68 | 0.70 | 0.39 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $8,000,000K ÷ $11,211,000K
= 0.71
The debt-to-equity ratio of Kenvue Inc. has exhibited some fluctuation over the past year. Initially, in March 2023, the ratio was notably low at 0.39, indicating that the company had a lower level of debt relative to its equity. However, this ratio increased steadily in the subsequent quarters, reaching its peak at 0.71 by the end of December 2023.
The upward trend in the debt-to-equity ratio suggests that Kenvue Inc. has been progressively relying more on debt to finance its operations or growth initiatives compared to equity. This could indicate a shift in the company's capital structure towards a higher debt burden.
It is essential to further investigate the reasons behind this increase in the debt-to-equity ratio to assess the firm's financial health and risk profile accurately. This analysis can help stakeholders understand how the company is managing its debt levels and whether it is sustainable in the long term.
Peer comparison
Dec 31, 2023