ScanSource Inc (SCSC)
Debt-to-equity 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-equity ratio | 0.15 | 0.16 | 0.15 | 0.19 | 0.21 |
June 30, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $136,149K ÷ $924,255K
= 0.15
ScanSource Inc's debt-to-equity ratio has shown a decreasing trend over the past five years, indicating a relatively lower reliance on debt financing compared to equity. As of June 30, 2024, the company's debt-to-equity ratio stood at 0.15, reflecting a prudent balance between debt and equity in its capital structure.
The decreasing trend from 0.21 in 2020 to 0.15 in 2024 suggests that ScanSource has been gradually reducing its debt relative to equity over the years. This could indicate improved financial stability and a lower financial risk profile for the company.
The consistent maintenance of a low debt-to-equity ratio over the years may signify a conservative approach to capital management, with a focus on maintaining a healthy financial position and liquidity. It also suggests that the company may have sufficient equity to support its operations and growth without being overly leveraged.
Overall, ScanSource Inc's decreasing debt-to-equity ratio trend indicates a favorable financial position and effective capital structure management, potentially enhancing investor confidence in the company's long-term sustainability and growth prospects.
Peer comparison
Jun 30, 2024