Quanex Building Products (NX)
Debt-to-capital ratio
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,010,750 | 545,554 | 464,835 | 419,782 | 355,759 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
October 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,010,750K)
= 0.00
The debt-to-capital ratio of Quanex Building Products has remained at 0.00 for the past five years, indicating that the company has not used any debt to finance its operations relative to its total capital structure. This suggests that Quanex Building Products has been primarily relying on equity financing rather than debt financing. While a low debt-to-capital ratio can imply a lower risk of financial distress, it may also indicate missed opportunities for leveraging debt to potentially enhance returns for shareholders. It would be important to further investigate the reasons behind the consistently low debt-to-capital ratio and assess the company's overall financial strategy and risk management practices.
Peer comparison
Oct 31, 2024