Photronics Inc (PLAB)

Debt-to-capital ratio

		Jan 28, 2024	Oct 31, 2023	Jul 30, 2023	Apr 30, 2023	Jan 29, 2023	Oct 31, 2022	Jul 31, 2022	May 1, 2022	Jan 30, 2022	Oct 31, 2021	Aug 1, 2021	May 2, 2021	Jan 31, 2021	Oct 31, 2020	Aug 2, 2020	May 3, 2020	Feb 2, 2020	Oct 31, 2019	Jul 28, 2019	Apr 28, 2019
Long-term debt	US$ in thousands	—	—	20,121	21,322	27,323	32,310	46,589	70,138	78,540	89,446	92,740	88,444	79,984	54,980	38,183	35,783	36,449	41,887	43,015	35,921
Total stockholders’ equity	US$ in thousands	1,022,960	975,008	961,212	928,047	920,765	831,527	850,318	834,399	838,425	823,692	817,892	821,392	815,502	804,962	790,242	769,191	770,676	769,892	763,394	763,568
Debt-to-capital ratio		0.00	0.00	0.02	0.02	0.03	0.04	0.05	0.08	0.09	0.10	0.10	0.10	0.09	0.06	0.05	0.04	0.05	0.05	0.05	0.04

January 28, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,022,960K)
= 0.00

The debt-to-capital ratio of Photronics, Inc. has shown a consistent downward trend over the past eight quarters, indicating an improvement in the company's capital structure and financial leverage. The ratio has decreased from 0.09 in Q2 2022 to 0.02 in Q1 2024. This suggests that Photronics has been reducing its reliance on debt financing in relation to its total capital, which is a positive sign for investors and creditors.

A lower debt-to-capital ratio indicates that the company is using less debt to fund its operations and growth, which could reduce financial risk and improve its overall financial health. Photronics' ability to maintain a low and decreasing debt-to-capital ratio over time may enhance its financial stability and creditworthiness in the eyes of stakeholders.

Thus, based on the trend in the debt-to-capital ratio, it appears that Photronics, Inc. has been effectively managing its debt levels and capital structure to strengthen its financial position.