Madison Square Garden Sports Corp (MSGS)
Debt-to-assets ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 275,000 | 295,000 | 220,000 | 355,000 | 350,000 |
| Total assets | US$ in thousands | 1,346,290 | 1,315,020 | 1,301,970 | 1,309,940 | 1,233,800 |
| Debt-to-assets ratio | 0.20 | 0.22 | 0.17 | 0.27 | 0.28 |
June 30, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $275,000K ÷ $1,346,290K
= 0.20
Madison Square Garden Sports Corp's debt-to-assets ratio has shown fluctuations over the past five years. As of June 30, 2024, the company's debt-to-assets ratio stands at 0.20, indicating that 20% of the company's assets are funded by debt. This ratio has decreased from the previous year's ratio of 0.22, suggesting an improvement in the company's debt management.
In analyzing the trend over the five-year period, we observe that the debt-to-assets ratio was highest in June 30, 2021, at 0.27, and June 30, 2020, at 0.28, reflecting higher levels of debt relative to assets during those years. The lowest ratio was recorded in June 30, 2022, at 0.17, showcasing a conservative capital structure with a lower reliance on debt financing.
The decreasing trend in the debt-to-assets ratio from 2020 to 2024 indicates that Madison Square Garden Sports Corp has been gradually reducing its reliance on debt to finance its operations and investments, which can be viewed positively as lower debt levels generally indicate a lower financial risk and improved solvency.
Overall, the company's debt-to-assets ratio has fluctuated over the years, but the recent decrease suggests a more conservative approach to debt management, which could enhance the company's financial stability and flexibility in the long term.
Peer comparison
Jun 30, 2024