Matthews International Corporation (MATW)
Debt-to-equity ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 769,614 | 786,484 | 795,291 | 759,086 | 807,710 |
| Total stockholders’ equity | US$ in thousands | 437,158 | 525,668 | 487,352 | 636,548 | 610,807 |
| Debt-to-equity ratio | 1.76 | 1.50 | 1.63 | 1.19 | 1.32 |
September 30, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $769,614K ÷ $437,158K
= 1.76
The debt-to-equity ratio of Matthews International Corporation has shown fluctuating trends over the past five years. In the most recent fiscal year ending on September 30, 2024, the company's debt-to-equity ratio stood at 1.76, indicating an increase from the previous year's ratio of 1.50.
The upward trend in the debt-to-equity ratio suggests that Matthews International Corporation has been relying more on debt financing relative to equity financing to support its operations and growth initiatives. A high debt-to-equity ratio may indicate increased financial risk for the company, as higher levels of debt could lead to higher interest expenses and potential difficulties in meeting debt obligations.
It is essential for investors and stakeholders to closely monitor Matthews International Corporation's debt management strategies, as a consistently high debt-to-equity ratio could potentially impact the company's financial stability and long-term sustainability. Additionally, further analysis of the company's profitability, cash flow generation, and overall financial health is recommended to gain a comprehensive understanding of its financial position.