Vail Resorts Inc (MTN)
Debt-to-capital ratio
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,721,600 | 2,750,680 | 2,670,300 | 2,736,180 | 2,387,120 |
| Total stockholders’ equity | US$ in thousands | 723,537 | 1,003,950 | 1,612,440 | 1,594,600 | 1,316,740 |
| Debt-to-capital ratio | 0.79 | 0.73 | 0.62 | 0.63 | 0.64 |
July 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,721,600K ÷ ($2,721,600K + $723,537K)
= 0.79
The debt-to-capital ratio of Vail Resorts Inc has been fluctuating over the past five years, as evidenced by the data provided. The ratio stood at 0.64 in July 2020 and increased to 0.79 in July 2024. This indicates that the company's reliance on debt to finance its operations and investments has increased over this period.
In July 2022, the ratio was at its lowest point of 0.62, suggesting a relatively lower proportion of debt in the company's capital structure. However, it is important to note that the ratio increased in the subsequent years, reaching 0.73 by July 2023.
Overall, the increasing trend in the debt-to-capital ratio of Vail Resorts Inc from 2020 to 2024 may indicate a growing financial risk associated with higher levels of debt in the company's capital structure. It is essential for stakeholders to monitor this trend closely to assess the company's ability to manage its debt obligations effectively while maintaining financial stability.
Peer comparison
Jul 31, 2024