Sally Beauty Holdings Inc (SBH)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 508,748 | 293,636 | 280,741 | 15,443 | -60,323 |
| Debt-to-capital ratio | 0.68 | 0.78 | 0.84 | 0.99 | 1.04 |
September 30, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,060,960K ÷ ($1,060,960K + $508,748K)
= 0.68
The debt-to-capital ratio of Sally Beauty Holdings Inc has exhibited a decreasing trend from 1.04 in 2019 to 0.68 in 2023. This decline indicates a reduction in the proportion of debt relative to the total capital structure of the company. A lower debt-to-capital ratio suggests improved financial stability and a decreased reliance on debt financing. This trend indicates that the company has been effectively managing its debt levels in relation to its capital over the past five years. It is worth noting that the lower ratio in 2023 may signify a healthier financial position and improved risk management compared to previous years. Overall, the declining trend in the debt-to-capital ratio reflects a positive trajectory in the company's capital structure and financial health.
Peer comparison
Sep 30, 2023