Dorian LPG Ltd (LPG)
Debt-to-capital ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 551,549 | 604,257 | 590,687 | 539,652 | 581,919 |
| Total stockholders’ equity | US$ in thousands | 1,023,530 | 873,846 | 920,151 | 946,825 | 977,052 |
| Debt-to-capital ratio | 0.35 | 0.41 | 0.39 | 0.36 | 0.37 |
March 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $551,549K ÷ ($551,549K + $1,023,530K)
= 0.35
The debt-to-capital ratio of Dorian LPG Ltd has exhibited some fluctuations over the past five years. In the most recent fiscal year ended March 31, 2024, the ratio stands at 0.35, indicating that the company has a lower level of debt relative to its total capital. This suggests that Dorian LPG Ltd relies less on debt financing compared to its own equity capital to support its operations and growth.
Looking at the trend over the five-year period, we can see that the debt-to-capital ratio has generally been within the range of 0.35 to 0.41, with a slight decrease in the most recent year compared to the previous years. This overall stability in the ratio indicates a consistent approach by the company in managing its capital structure and debt levels.
The decreasing trend observed in the debt-to-capital ratio from 0.41 in March 2023 to 0.35 in March 2024 could signify that Dorian LPG Ltd has been gradually reducing its reliance on debt financing or increasing its equity capital base. This may be a positive signal to investors and creditors as a lower ratio implies lower financial risk and potentially stronger financial health.
In conclusion, Dorian LPG Ltd has maintained a relatively stable debt-to-capital ratio over the past five years, with a slight improvement in the most recent year. This indicates a prudent approach to capital structure management and suggests a favorable position in terms of financial risk and solvency.