Sonos Inc (SONO)
Debt-to-capital ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | 0 | 18,251 | 24,840 |
| Total stockholders’ equity | US$ in thousands | 518,657 | 560,513 | 569,042 | 297,839 | 280,928 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.06 | 0.08 |
September 30, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $518,657K)
= 0.00
The debt-to-capital ratio of Sonos Inc has remained very low over the past five years, indicating that the company has primarily financed its operations through equity rather than debt. The ratio has consistently been at 0.00 for the past three years, suggesting that the company has had no or negligible long-term debt in relation to its capital structure during this period. This signifies a strong financial position with a lower reliance on debt financing. However, it's worth noting that in the prior two years, the ratio increased to 0.08 and 0.11, implying a slight shift towards higher debt financing. Overall, the trend is indicative of a conservative financial strategy with limited reliance on debt for capital expansion or operational needs.
Peer comparison
Sep 30, 2023