Prestige Brand Holdings Inc (PBH)

Debt-to-capital ratio

		Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Long-term debt	US$ in thousands	1,125,800	1,210,000	1,275,000	1,330,000	1,345,790	1,440,000	1,455,000	1,490,000	1,476,660	1,550,000	1,614,000	1,545,350	1,479,650	1,548,690	1,548,100	1,620,640	1,730,300	1,701,310	1,754,170	1,779,380
Total stockholders’ equity	US$ in thousands	1,655,080	1,600,580	1,535,960	1,480,300	1,447,080	1,686,860	1,619,840	1,584,740	1,577,610	1,518,320	1,461,650	1,416,250	1,358,300	1,323,220	1,278,220	1,227,010	1,170,970	1,156,490	1,112,790	1,101,620
Debt-to-capital ratio		0.40	0.43	0.45	0.47	0.48	0.46	0.47	0.48	0.48	0.51	0.52	0.52	0.52	0.54	0.55	0.57	0.60	0.60	0.61	0.62

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 been gradually increasing over the past few quarters, indicating a higher level of financial leverage. As of March 31, 2024, the ratio stands at 0.40, showing that 40% of the company's capital structure is comprised of debt. This suggests that the company relies more on debt financing relative to its total capital, which includes both debt and equity.

The trend of increasing debt-to-capital ratio could signal potential risks associated with higher debt levels, such as increased interest payments, reduced financial flexibility, and higher leverage risk. It is important for stakeholders to closely monitor this ratio to assess the company's ability to manage its debt obligations and maintain financial stability.

Overall, a higher debt-to-capital ratio may indicate that Prestige Brand Holdings Inc is becoming more leveraged and potentially more vulnerable to economic downturns or changes in interest rates. Investors and analysts should continue to assess the company's overall financial health and debt management strategies in light of this trend.