Sally Beauty Holdings Inc (SBH)
Debt-to-equity 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-equity ratio | 2.09 | 3.53 | 5.10 | 118.96 | — |
September 30, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,060,960K ÷ $508,748K
= 2.09
The debt-to-equity ratio for Sally Beauty Holdings Inc has shown a significant decrease over the last few years. As of September 30, 2023, the ratio stands at 2.10, which indicates that the company has $2.10 in debt for every $1 in equity. This represents a substantial improvement compared to the ratios of 3.92 in 2022 and 4.93 in 2021. The considerable drop in the ratio suggests that the company has been effectively managing its debt levels in relation to its equity, potentially reducing financial risk and improving its overall financial health. However, the sharp increase in the ratio to 116.37 in 2020 reflects a period of high debt relative to equity, which may have been a result of specific financial events or challenges during that year. It is important for the company to continue monitoring and managing its debt levels to maintain a healthy balance between debt and equity in its capital structure.
Peer comparison
Sep 30, 2023