Sally Beauty Holdings Inc (SBH)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 541,340 | 508,748 | 487,712 | 425,888 | 373,298 | 293,636 | 295,871 | 271,866 | 281,021 | 280,741 | 222,270 | 134,833 | 98,866 | 15,443 | -69,133 | -53,195 | 2,199 | -60,323 | -70,465 | -145,075 |
| Debt-to-capital ratio | 0.67 | 0.68 | 0.69 | 0.71 | 0.74 | 0.78 | 0.78 | 0.84 | 0.84 | 0.84 | 0.87 | 0.92 | 0.95 | 0.99 | 1.04 | 1.04 | 1.00 | 1.04 | 1.05 | 1.09 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,077,950K ÷ ($1,077,950K + $541,340K)
= 0.67
The debt-to-capital ratio of Sally Beauty Holdings Inc has shown a declining trend over the past quarters, indicating a decreasing reliance on debt to fund its operations and investments. As of Q1 2024, the debt-to-capital ratio stands at 0.66, which suggests that 66% of the company's capital structure is financed by debt while the remaining 34% is funded by equity. This represents an improvement from the ratio of 0.84 in Q2 2022, showcasing a more conservative approach to leverage management.
The decreasing trend in the debt-to-capital ratio is generally considered positive as it signifies lower financial risk and a stronger financial position. However, it is essential to note that a lower debt-to-capital ratio may also indicate limited capacity for growth and investment opportunities, as the company may be choosing to rely more on equity financing.
Overall, the declining debt-to-capital ratio of Sally Beauty Holdings Inc indicates a prudent approach to capital structuring, balancing between debt and equity to support sustainable growth and profitability in the long term.
Peer comparison
Dec 31, 2023