Dorian LPG Ltd (LPG)
Debt-to-equity 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-equity ratio | 0.54 | 0.69 | 0.64 | 0.57 | 0.60 |
March 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $551,549K ÷ $1,023,530K
= 0.54
The debt-to-equity ratio of Dorian LPG Ltd has shown a fluctuating trend over the past five years. In the most recent fiscal year ended March 31, 2024, the ratio decreased to 0.54 from 0.69 in the previous year, indicating a reduction in the company's reliance on debt relative to equity. This suggests a stronger financial position in terms of leverage as the company is financing a lower proportion of its assets with debt.
Although the ratio has been somewhat volatile in the past five years, it appears that Dorian LPG Ltd has managed its debt and equity structure more efficiently in the latest year. The downward trend in the ratio reflects a potential improvement in the company's risk profile and financial stability. However, it is essential to consider other factors such as industry norms, future growth plans, and macroeconomic conditions to gain a more comprehensive understanding of the company's overall financial health.