Sally Beauty Holdings Inc (SBH)
Debt-to-assets ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,008,510 | 1,060,960 | 1,037,490 | 1,431,090 | 1,837,100 |
| Total assets | US$ in thousands | 2,792,900 | 2,725,250 | 2,576,870 | 2,847,130 | 2,895,150 |
| Debt-to-assets ratio | 0.36 | 0.39 | 0.40 | 0.50 | 0.63 |
September 30, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,008,510K ÷ $2,792,900K
= 0.36
The debt-to-assets ratio of Sally Beauty Holdings Inc has shown a decreasing trend over the past five years. In fiscal year 2020, the ratio was at its highest point of 0.63, indicating that the company had more debt relative to its total assets. However, the ratio has since declined steadily, reaching 0.36 in fiscal year 2024. This downward trend suggests that Sally Beauty Holdings Inc has been effectively managing its debt levels in relation to its assets.
A lower debt-to-assets ratio generally implies a lower financial risk for the company, as it indicates a smaller proportion of debt in relation to total assets. This can be seen as a positive sign for investors and creditors, as it suggests a stronger financial position and potential for better debt repayment capabilities. The decreasing trend in the debt-to-assets ratio of Sally Beauty Holdings Inc could indicate improved financial health and risk management practices within the company.
Peer comparison
Sep 30, 2024