Monro Muffler Brake Inc (MNRO)
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 | 102,000 | 105,000 | 176,466 | 190,000 | 566,400 |
| Total stockholders’ equity | US$ in thousands | 656,775 | 694,922 | 782,906 | 749,684 | 734,440 |
| Debt-to-capital ratio | 0.13 | 0.13 | 0.18 | 0.20 | 0.44 |
March 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $102,000K ÷ ($102,000K + $656,775K)
= 0.13
The debt-to-capital ratio of Monro Muffler Brake Inc has shown a decreasing trend over the past five years, indicating an improvement in the company's financial leverage. The ratio decreased from 0.44 in 2020 to 0.13 in 2024. This signifies that the company has been reducing its reliance on debt financing relative to its total capital structure.
A lower debt-to-capital ratio suggests that Monro Muffler Brake Inc is utilizing a smaller proportion of debt in funding its operations and investments compared to its equity capital. This may indicate a more conservative financial strategy, potentially leading to lower financial risk and increased financial stability.
Overall, the downward trend in the debt-to-capital ratio of Monro Muffler Brake Inc demonstrates a positive development in the company's capital structure and financial health.
Peer comparison
Mar 31, 2024