Sally Beauty Holdings Inc (SBH)
Debt-to-assets ratio
| 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 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,077,950 | 1,060,960 | 1,066,560 | 1,066,560 | 1,056,350 | 1,037,490 | 1,042,080 | 1,405,760 | 1,423,010 | 1,431,090 | 1,443,150 | 1,655,520 | 1,866,830 | 1,837,100 | 1,829,220 | 1,332,520 | 1,623,970 | 1,608,640 | 1,586,870 | 1,712,120 |
| Total assets | US$ in thousands | 2,731,390 | 2,725,250 | 2,675,400 | 2,675,110 | 2,668,550 | 2,576,870 | 2,685,870 | 2,743,000 | 2,855,940 | 2,847,130 | 2,778,180 | 2,909,570 | 2,999,650 | 2,895,150 | 3,198,090 | 2,921,170 | 2,675,060 | 2,098,450 | 2,072,270 | 2,092,610 |
| Debt-to-assets ratio | 0.39 | 0.39 | 0.40 | 0.40 | 0.40 | 0.40 | 0.39 | 0.51 | 0.50 | 0.50 | 0.52 | 0.57 | 0.62 | 0.63 | 0.57 | 0.46 | 0.61 | 0.77 | 0.77 | 0.82 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,077,950K ÷ $2,731,390K
= 0.39
The debt-to-assets ratio of Sally Beauty Holdings Inc has shown a decreasing trend from Q2 2022 to Q1 2024, indicating an improvement in the company's financial leverage and risk management. The ratio stood at 0.50 in Q2 2022 and has gradually decreased to 0.39 in both Q1 and Q4 2023. This suggests that the company has been able to reduce its debt relative to its total assets over this period.
The decreasing trend in the debt-to-assets ratio could imply that Sally Beauty Holdings Inc has been successful in either paying down its debt, increasing its assets, or a combination of both. A lower debt-to-assets ratio is generally considered favorable as it indicates lower financial risk and better solvency for the company.
Overall, the consistent decrease in the debt-to-assets ratio over the quarters analyzed reflects positively on Sally Beauty Holdings Inc's financial health and ability to effectively manage its debt levels relative to its assets.
Peer comparison
Dec 31, 2023