Sonos Inc (SONO)
Debt-to-equity ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | 0 | 18,251 |
| Total stockholders’ equity | US$ in thousands | 428,620 | 518,657 | 560,513 | 569,042 | 297,839 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.06 |
September 30, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $428,620K
= 0.00
The debt-to-equity ratio for Sonos Inc has consistently been 0.00 for the past four years, indicating that the company has not utilized any debt to finance its operations and has relied solely on equity financing. This implies that the company's financial structure is predominantly equity-based, which could be viewed positively as it reduces financial risk and potential interest expenses. However, the sudden increase in the ratio to 0.06 in Sep 30, 2020, may indicate a shift in the company's financing strategy towards using some level of debt. It would be essential for stakeholders to closely monitor this change and assess its potential implications for the company's financial health and risk profile in the future.
Peer comparison
Sep 30, 2024