Sally Beauty Holdings Inc (SBH)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 628,535 | 508,748 | 293,636 | 280,741 | 15,443 |
| Debt-to-capital ratio | 0.62 | 0.68 | 0.78 | 0.84 | 0.99 |
September 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,008,510K ÷ ($1,008,510K + $628,535K)
= 0.62
The debt-to-capital ratio of Sally Beauty Holdings Inc has shown a declining trend from 0.99 in September 2020 to 0.62 in September 2024. This indicates that the company has been able to reduce its reliance on debt financing in relation to its total capital over the years. A decreasing debt-to-capital ratio generally suggests a lower financial risk and better financial health as it signifies a lower proportion of debt in the company's capital structure. It is important to note that a debt-to-capital ratio of 0.62 as of September 2024 indicates that approximately 62% of the company's capital is funded through debt, while the remaining 38% is funded through equity. Overall, the decreasing trend in the debt-to-capital ratio reflects a positive development in the company's capital structure and financial stability.
Peer comparison
Sep 30, 2024