Leslies Inc (LESL)
Debt-to-capital ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | ||
|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 769,065 | 773,276 | 779,726 | 786,125 |
| Total stockholders’ equity | US$ in thousands | -177,149 | -161,362 | -197,951 | -217,558 |
| Debt-to-capital ratio | 1.30 | 1.26 | 1.34 | 1.38 |
September 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $769,065K ÷ ($769,065K + $-177,149K)
= 1.30
The debt-to-capital ratio of Leslies Inc has fluctuated over the past four years, standing at 1.30 in 2024, compared to 1.26 in 2023, 1.34 in 2022, and 1.38 in 2021. This ratio indicates the proportion of a company's capital that is funded by debt. Generally, a higher debt-to-capital ratio suggests that the company is more reliant on debt financing, which can increase financial risk due to interest obligations.
The slight increase in the debt-to-capital ratio from 2023 to 2024 may indicate a higher level of debt relative to the overall capital structure of the company. It is essential for stakeholders, including investors and creditors, to closely monitor the trend in this ratio to assess Leslies Inc's financial health and risk profile associated with its capital structure. Further analysis of the company's debt levels, profitability, and cash flow generation would provide a more comprehensive understanding of its financial position.
Peer comparison
Sep 30, 2024