Monro Muffler Brake Inc (MNRO)
Debt-to-capital ratio
| Mar 31, 2024 | Dec 23, 2023 | Sep 23, 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 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 102,000 | 94,000 | 55,000 | 65,000 | 105,000 | 130,000 | 130,000 | 110,000 | 176,466 | 195,000 | 170,000 | 198,000 | 190,000 | 190,000 | 231,300 | 326,200 | 566,400 | 196,985 | 168,912 | 160,000 |
| Total stockholders’ equity | US$ in thousands | 656,775 | 659,718 | 700,143 | 695,168 | 694,922 | 701,183 | 721,770 | 769,676 | 782,906 | 781,511 | 772,918 | 758,591 | 749,684 | 736,043 | 736,367 | 730,720 | 734,440 | 746,592 | 733,576 | 718,588 |
| Debt-to-capital ratio | 0.13 | 0.12 | 0.07 | 0.09 | 0.13 | 0.16 | 0.15 | 0.13 | 0.18 | 0.20 | 0.18 | 0.21 | 0.20 | 0.21 | 0.24 | 0.31 | 0.44 | 0.21 | 0.19 | 0.18 |
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 fluctuated over the periods analyzed. The ratio indicates the proportion of the company's capital that is financed through debt. Generally, a lower debt-to-capital ratio is favorable as it suggests lower financial risk and greater financial stability.
Based on the data provided, we observe that the debt-to-capital ratio has ranged from 0.07 to 0.44 over the past few quarters. The ratio decreased from 0.21 in December 2019 to 0.07 in September 2023 before climbing back to 0.44 by March 2020. This suggests significant fluctuations in the company's debt and capital structure during the period under review.
It is important to consider the reasons behind these fluctuations in the debt-to-capital ratio. A low ratio may indicate conservative financing, while a high ratio may suggest aggressive growth through leverage. Further analysis of Monro Muffler Brake Inc's financial statements, including the composition of debt and capital, would be necessary to gain a deeper understanding of the company's financial position and strategy.
Peer comparison
Mar 31, 2024