Sally Beauty Holdings Inc (SBH)
Debt-to-assets ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,060,960 | 1,037,490 | 1,431,090 | 1,837,100 | 1,608,640 |
| Total assets | US$ in thousands | 2,725,250 | 2,576,870 | 2,847,130 | 2,895,150 | 2,098,450 |
| Debt-to-assets ratio | 0.39 | 0.40 | 0.50 | 0.63 | 0.77 |
September 30, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,060,960K ÷ $2,725,250K
= 0.39
The debt-to-assets ratio of Sally Beauty Holdings Inc has shown a decreasing trend over the past five years, indicating a positive sign for the company’s financial health. The ratio declined from 0.76 in 2019 to 0.39 in 2023. This suggests that the company has been effectively managing its debt in relation to its assets. A lower debt-to-assets ratio signifies that a smaller portion of the company's assets is funded by debt, which can reduce the financial risk and improve the company's ability to meet its debt obligations. This trend may indicate that the company has been implementing strategies to reduce its debt levels or increase its asset base. Overall, the decreasing trend of the debt-to-assets ratio reflects positively on the company's financial stability and leverage position.
Peer comparison
Sep 30, 2023