Lancaster Colony Corporation (LANC)
Debt-to-capital ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 925,772 | 862,267 | 844,687 | 843,147 | 783,300 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
June 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $925,772K)
= 0.00
The debt-to-capital ratio of Lancaster Colony Corporation has consistently been at 0.00 for the past five years, indicating that the company has not used any debt to finance its operations relative to its total capital structure. This suggests that Lancaster Colony Corporation has been primarily relying on equity to fund its activities, which can be viewed positively by investors and creditors as it implies lower financial risk and potentially greater stability in the company's financial position. However, it's important to note that a zero debt-to-capital ratio may also indicate missed opportunities for leveraging debt to optimize capital structure for potential growth or tax advantages. Overall, maintaining a consistent zero debt-to-capital ratio suggests a conservative financial approach by the company.
Peer comparison
Jun 30, 2024