Sally Beauty Holdings Inc (SBH)
Debt-to-equity 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-equity ratio | 1.99 | 2.09 | 2.19 | 2.50 | 2.83 | 3.53 | 3.52 | 5.17 | 5.06 | 5.10 | 6.49 | 12.28 | 18.88 | 118.96 | — | — | 738.50 | — | — | — |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,077,950K ÷ $541,340K
= 1.99
The debt-to-equity ratio of Sally Beauty Holdings Inc has shown a fluctuating trend over the past several quarters. The ratio has been consistently above 1, indicating that the company has been relying more on debt financing than equity to fund its operations and growth.
In Q1 2024, the debt-to-equity ratio decreased to 1.98 from the previous quarter's 2.10. This may suggest that the company either reduced its debt levels or increased its equity position during this period.
Looking back, the ratio has been steadily increasing since Q2 2022 when it was at 5.08, indicating a higher proportion of debt relative to equity in the company's capital structure. This trend continued until Q1 2023 when the ratio peaked at 3.07 before gradually declining in subsequent quarters.
Overall, the varying levels of the debt-to-equity ratio suggest that Sally Beauty Holdings Inc has been actively managing its capital structure and may have been making strategic decisions regarding its financing mix. It is important for stakeholders to closely monitor this ratio to assess the company's financial leverage and risk profile.
Peer comparison
Dec 31, 2023