Sally Beauty Holdings Inc (SBH)
Debt-to-equity 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-equity ratio | 1.60 | 2.09 | 3.53 | 5.10 | 118.96 |
September 30, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,008,510K ÷ $628,535K
= 1.60
The debt-to-equity ratio of Sally Beauty Holdings Inc has shown a decreasing trend over the past five years, indicating a shift towards a more favorable capital structure. In particular, the ratio decreased from 118.96 in 2020 to 1.60 in 2024, reflecting a significant improvement in the company's financial leverage. This suggests that the company has been reducing its reliance on debt financing relative to equity, which may lead to lower financial risk and enhanced financial stability. Overall, the decreasing trend in the debt-to-equity ratio indicates a positive development in the company's financial health and may be viewed favorably by investors and creditors.
Peer comparison
Sep 30, 2024