Photronics Inc (PLAB)
Debt-to-equity ratio
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | 32,310 | 89,446 | 54,980 | 41,887 |
| Total stockholders’ equity | US$ in thousands | 975,008 | 831,527 | 823,692 | 804,962 | 769,892 |
| Debt-to-equity ratio | 0.00 | 0.04 | 0.11 | 0.07 | 0.05 |
October 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $975,008K
= 0.00
The debt-to-equity ratio of Photronics, Inc. has varied over the past five years. In 2023, the ratio stands at 0.03, indicating a low level of debt relative to equity. This suggests that the company is relying more on equity financing rather than debt to fund its operations and growth. Compared to the previous year, the ratio has decreased, signaling a reduction in the company's financial leverage.
In 2022, the debt-to-equity ratio was 0.05, also reflecting a conservative financial structure. The company's reliance on debt was minimal compared to equity, indicating a relatively low level of financial risk.
In 2021, there was a notable increase in the debt-to-equity ratio to 0.14. This suggests a higher level of debt relative to equity, indicating a shift towards greater reliance on borrowing to finance its operations or investments. The increase in the ratio may indicate an increase in financial risk and leverage.
In 2020, the debt-to-equity ratio was 0.09, showing a moderate level of debt in relation to equity. This suggests a balanced capital structure with a reasonable level of financial leverage.
In 2019, the ratio was 0.07, indicating a similar moderate level of debt relative to equity. This suggests consistency in the company's approach to capital structure and financial risk management.
Overall, the trend in the debt-to-equity ratio indicates that Photronics, Inc. has maintained a conservative approach to its capital structure, with a low to moderate reliance on debt financing. This suggests prudent financial management and a balanced approach to leveraging its capital to support business operations and growth.
Peer comparison
Oct 31, 2023