ScanSource Inc (SCSC)
Debt-to-capital ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 136,149 | 144,006 | 123,733 | 135,331 | 143,175 |
| Total stockholders’ equity | US$ in thousands | 924,255 | 905,298 | 806,528 | 731,191 | 678,246 |
| Debt-to-capital ratio | 0.13 | 0.14 | 0.13 | 0.16 | 0.17 |
June 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $136,149K ÷ ($136,149K + $924,255K)
= 0.13
The debt-to-capital ratio of ScanSource Inc has shown a downward trend over the past five years, decreasing from 0.17 in 2020 to 0.13 in 2024. This indicates that the company has been relying less on debt financing relative to its total capital structure. A lower debt-to-capital ratio generally implies a lower financial risk and greater financial stability, as the company is less leveraged.
The decrease in the debt-to-capital ratio could suggest that ScanSource Inc has been effectively managing its debt levels, potentially reducing interest expenses and improving its overall financial health. However, it is essential to consider the reasons behind this trend, such as paying down debt, issuing equity, or a combination of both.
Overall, a declining debt-to-capital ratio for ScanSource Inc signifies a positive financial position in terms of leverage and capital structure management, indicating a healthier balance between debt and equity financing.
Peer comparison
Jun 30, 2024