Mercury Systems Inc (MRCY)
Debt-to-equity 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-equity ratio | 0.40 | 0.33 | 0.29 | 0.13 | 0.00 |
June 30, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $591,500K ÷ $1,472,780K
= 0.40
The debt-to-equity ratio of Mercury Systems Inc has been showing a consistent upward trend over the past five years, indicating an increasing reliance on debt to finance its operations and growth.
In June 2020, the company had a debt-to-equity ratio of 0.00, suggesting that it was entirely equity-funded at that time. However, this ratio has steadily increased since then, reaching 0.40 in June 2024. This indicates that the company's debt levels have grown relative to its equity base.
A higher debt-to-equity ratio could indicate higher financial risk for the company, as it means the company has a higher proportion of debt in its capital structure. While debt can be beneficial in terms of leveraging growth opportunities and tax advantages, it also exposes the company to risks such as higher interest expenses and potential financial distress in the event of economic downturns.
It is important for investors and stakeholders to closely monitor Mercury Systems Inc's debt levels and assess the company's ability to manage its debt obligations and maintain a healthy balance sheet going forward.
Peer comparison
Jun 30, 2024