Leslies Inc (LESL)
Debt-to-capital ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 771,718 | 773,276 | 774,884 | 776,542 | 778,133 | 779,726 | 781,322 | 782,921 | 784,527 | 786,125 | 787,731 | 789,339 | 795,394 |
| Total stockholders’ equity | US$ in thousands | -198,648 | -161,362 | -179,810 | -254,965 | -225,635 | -197,951 | -258,769 | -385,731 | -381,304 | -217,558 | -265,726 | -391,010 | -386,410 |
| Debt-to-capital ratio | 1.35 | 1.26 | 1.30 | 1.49 | 1.41 | 1.34 | 1.50 | 1.97 | 1.95 | 1.38 | 1.51 | 1.98 | 1.94 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $771,718K ÷ ($771,718K + $-198,648K)
= 1.35
Leslies Inc's debt-to-capital ratio has shown some fluctuation over the past few quarters. The ratio was at its lowest in September 2023 at 1.26 and increased to 1.35 by the end of December 2023. This indicates that the company's reliance on debt to finance its operations and growth has slightly increased.
Looking at the historical trend, there have been periods of higher and lower debt-to-capital ratios. The ratio was relatively high in March 2022 and then decreased until June 2023 before starting to rise again.
A higher debt-to-capital ratio suggests that a company has a higher proportion of debt in its capital structure compared to equity. This could potentially indicate higher financial risk as the company may have higher interest payments to make. On the other hand, a lower ratio indicates a stronger equity position and less reliance on debt financing.
It would be important for Leslies Inc to closely monitor its debt levels and ensure that the company maintains a healthy balance between debt and equity to support sustainable growth and profitability in the long term.
Peer comparison
Dec 31, 2023