Monro Muffler Brake Inc (MNRO)
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 | 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-equity ratio | 0.16 | 0.15 | 0.23 | 0.25 | 0.77 |
March 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $102,000K ÷ $656,775K
= 0.16
The trend in Monro Muffler Brake Inc's debt-to-equity ratio over the past five years indicates a declining pattern. The ratio decreased from 0.77 in 2020 to 0.16 in 2024, suggesting a significant reduction in the proportion of debt relative to equity in the company's capital structure. This downward trend indicates that the company has been relying less on debt financing and has potentially been strengthening its equity position over the years.
A lower debt-to-equity ratio is generally seen as a positive sign, as it signifies lower financial risk and a greater ability to handle financial obligations using internal resources rather than external debt. Monro Muffler Brake Inc's decreasing debt-to-equity ratio may indicate improved financial stability and creditworthiness, which could positively impact its ability to invest in growth opportunities and withstand economic downturns.
Overall, the declining trend in Monro Muffler Brake Inc's debt-to-equity ratio reflects a move towards a more conservative capital structure, with a lower reliance on debt to fund its operations and growth initiatives. This trend may be viewed favorably by investors and stakeholders looking for a financially resilient and sustainable company.
Peer comparison
Mar 31, 2024