Sally Beauty Holdings Inc (SBH)
Debt-to-capital ratio
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,008,510 | 986,513 | 988,755 | 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 |
| Total stockholders’ equity | US$ in thousands | 628,535 | 577,670 | 550,850 | 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 |
| Debt-to-capital ratio | 0.62 | 0.63 | 0.64 | 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 |
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 gradual increase over the past few years, indicating a rising level of debt relative to the company's total capital. As of September 30, 2024, the ratio stands at 0.62, which means that approximately 62% of the company's capital structure is comprised of debt.
The trend of increasing debt-to-capital ratio suggests that the company has been relying more on debt financing to support its operations and growth initiatives. While debt can provide a source of funds for investments, it also increases the financial risk and interest burden of the company.
It is important for investors and stakeholders to closely monitor the debt-to-capital ratio to assess the company's leverage and financial stability. A higher ratio indicates a higher level of financial risk and may raise concerns about the company's ability to meet its debt obligations in the long term.
Peer comparison
Sep 30, 2024