Leslies Inc (LESL)
Debt-to-assets ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | ||
|---|---|---|---|---|
| Long-term debt | US$ in thousands | 773,276 | 779,726 | 786,125 |
| Total assets | US$ in thousands | 1,034,440 | 1,109,630 | 1,042,230 |
| Debt-to-assets ratio | 0.75 | 0.70 | 0.75 |
September 30, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $773,276K ÷ $1,034,440K
= 0.75
The debt-to-assets ratio of Leslies Inc has fluctuated over the past three years, standing at 0.75 as of September 30, 2023, compared to 0.70 in 2022 and 0.75 in 2021. This ratio indicates that Leslies Inc is relying on debt to finance a significant portion of its assets, with 75% of its assets being funded by debt in 2023.
A higher debt-to-assets ratio suggests a higher level of financial risk, as the company has a larger proportion of debt compared to its total assets. This could make the company more vulnerable to economic downturns or changes in interest rates, as it may struggle to meet its debt obligations. On the other hand, a lower ratio indicates a stronger financial position, as the company is less reliant on debt financing.
Overall, Leslies Inc should closely monitor its debt levels and consider strategies to reduce its reliance on debt, such as increasing profitability, generating more internal funds, or refinancing existing debt at lower interest rates to improve its financial stability in the long term.
Peer comparison
Sep 30, 2023