Mercury Systems Inc (MRCY)
Debt-to-capital ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 591,500 | 511,500 | 451,500 | 200,000 | 0 |
| Total stockholders’ equity | US$ in thousands | 1,472,780 | 1,566,680 | 1,537,180 | 1,484,150 | 1,384,780 |
| Debt-to-capital ratio | 0.29 | 0.25 | 0.23 | 0.12 | 0.00 |
June 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $591,500K ÷ ($591,500K + $1,472,780K)
= 0.29
The debt-to-capital ratio of Mercury Systems Inc has shown an increasing trend over the past five years. As of June 30, 2024, the ratio stood at 0.29, representing an increase from 0.25 in the previous year and a significant rise from 0.00 five years ago. This indicates that the company has been relying more on debt to finance its operations and investments relative to its total capital structure.
The rising debt-to-capital ratio may suggest that Mercury Systems Inc has been taking on more debt to support its growth or to fund its strategic initiatives. While some level of debt is a common and often necessary component of a company's capital structure, a consistently increasing ratio could potentially indicate a higher level of financial risk. It is important for investors and stakeholders to closely monitor how effectively the company manages its debt obligations and whether it can generate sufficient cash flows to meet its debt repayment requirements in the long term.
Peer comparison
Jun 30, 2024