ScanSource Inc (SCSC)
Debt-to-assets ratio
| 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 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 136,149 | 138,024 | 139,899 | 141,774 | 144,006 | 145,881 | 147,756 | 149,631 | 123,733 | 126,546 | 129,358 | 132,171 | 135,331 | 137,206 | 139,081 | 140,956 | 143,175 | 145,050 | 146,925 | 148,800 |
| Total assets | US$ in thousands | 1,779,030 | 1,782,990 | 1,780,800 | 1,898,540 | 2,068,170 | 1,980,380 | 2,130,530 | 2,000,310 | 1,937,430 | 1,840,800 | 1,770,870 | 1,697,350 | 1,671,680 | 1,582,620 | 1,597,120 | 1,733,340 | 1,692,090 | 2,073,800 | 2,210,130 | 2,218,520 |
| Debt-to-assets ratio | 0.08 | 0.08 | 0.08 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.06 | 0.07 | 0.07 | 0.08 | 0.08 | 0.09 | 0.09 | 0.08 | 0.08 | 0.07 | 0.07 | 0.07 |
June 30, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $136,149K ÷ $1,779,030K
= 0.08
The debt-to-assets ratio of ScanSource Inc has remained relatively stable over the past eight quarters, ranging between 0.06 to 0.09. This ratio indicates the proportion of the company's total assets that are financed by debt. A lower ratio typically suggests lower financial risk as it indicates that the company relies less on debt to fund its operations and investments. In the case of ScanSource Inc, the ratio has mostly been around 0.07, implying that a moderate portion of its assets is debt-financed.
The consistency of the ratio around 0.07 indicates that ScanSource Inc has been maintaining a moderate level of debt compared to its total assets, which suggests a balanced approach to capital structure. Investors and creditors generally prefer a stable and manageable debt-to-assets ratio, as excessive debt levels could lead to financial distress and decreased solvency. ScanSource Inc's current ratio suggests a prudent debt management strategy, which should support its financial stability and long-term sustainability.
Peer comparison
Jun 30, 2024