Leslies Inc (LESL)

Debt-to-capital ratio

Sep 30, 2023 Sep 30, 2022 Sep 30, 2021
Long-term debt US$ in thousands 773,276 779,726 786,125
Total stockholders’ equity US$ in thousands -161,362 -197,951 -217,558
Debt-to-capital ratio 1.26 1.34 1.38

September 30, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $773,276K ÷ ($773,276K + $-161,362K)
= 1.26

The debt-to-capital ratio for Leslies Inc has shown a declining trend over the past three years. In September 2021, the ratio was at its highest point of 1.38, indicating that 138% of the company's capital was financed through debt. However, there has been an improvement in the subsequent years, with the ratio decreasing to 1.34 in September 2022 and further down to 1.26 in September 2023.

This downward trend suggests that Leslies Inc has been gradually reducing its reliance on debt to fund its operations and investments relative to its total capital structure. It may indicate that the company is becoming more financially stable and less leveraged, which could be viewed positively by investors and creditors.

However, it is important to further investigate the composition and terms of the debt, as well as the overall capital structure, to fully assess the financial health and risk profile of Leslies Inc.


Peer comparison

Sep 30, 2023