Quanex Building Products (NX)
Debt-to-assets ratio
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total assets | US$ in thousands | 2,319,790 | 831,143 | 724,617 | 717,323 | 691,585 |
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
October 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $2,319,790K
= 0.00
The debt-to-assets ratio of Quanex Building Products has consistently been 0.00 for the past five years, indicating that the company has not utilized any debt to finance its assets during this period. This implies that Quanex Building Products has been relying entirely on equity financing to support its operations and investments. While a low or zero debt-to-assets ratio can suggest financial stability and lower financial risk due to reduced interest obligations and potential bankruptcy risks associated with high debt levels, it may also signal missed opportunities for leveraging debt to potentially enhance returns for shareholders. It is important to consider the company's overall financial strategy and capital structure decisions in assessing the implications of such a consistently low debt-to-assets ratio.
Peer comparison
Oct 31, 2024