Vail Resorts Inc (MTN)
Debt-to-equity 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-equity ratio | 3.76 | 2.74 | 1.66 | 1.72 | 1.81 |
July 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,721,600K ÷ $723,537K
= 3.76
The debt-to-equity ratio of Vail Resorts Inc has shown an increasing trend over the past five years, indicating a higher reliance on debt financing relative to equity. The ratio increased from 1.81 in 2020 to 3.76 in 2024, signifying a significant rise in debt levels compared to shareholders' equity. This suggests that the company may be taking on more debt to fund its operations or expansion activities.
The sharp increase in the debt-to-equity ratio from 2022 to 2024 should be carefully monitored as it indicates a substantial shift in the company's capital structure towards higher debt levels. Investors and creditors may view this trend as a potential risk factor, as higher debt levels can lead to increased financial leverage and interest expenses, impacting the company's overall financial health and stability.
Overall, Vail Resorts Inc's increasing debt-to-equity ratio highlights the need for close scrutiny of the company's debt management strategies and financial leverage to ensure sustainable growth and mitigate any potential risks associated with high debt levels.
Peer comparison
Jul 31, 2024