Prestige Brand Holdings Inc (PBH)

Debt-to-capital ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Long-term debt	US$ in thousands	1,125,800	1,345,790	1,476,660	1,479,650	1,730,300
Total stockholders’ equity	US$ in thousands	1,655,080	1,447,080	1,577,610	1,358,300	1,170,970
Debt-to-capital ratio		0.40	0.48	0.48	0.52	0.60

March 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,125,800K ÷ ($1,125,800K + $1,655,080K)
= 0.40

The debt-to-capital ratio of Prestige Brand Holdings Inc has exhibited a declining trend over the past five years, decreasing from 0.60 as of March 31, 2020, to 0.40 as of March 31, 2024. This indicates that the company has been reducing its reliance on debt financing relative to its total capital structure. A lower debt-to-capital ratio suggests a healthier financial position as it reflects a lower proportion of debt in the company's capital structure compared to its equity. The decreasing trend in the debt-to-capital ratio may signify improved financial stability and reduced financial risk for Prestige Brand Holdings Inc. Furthermore, a lower debt-to-capital ratio could potentially enhance the company's ability to secure favorable financing terms and maintain sustainable operations.