Sonos Inc (SONO)
Debt-to-equity ratio
| Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | 0 | 0 | 0 | 0 | 18,251 | 19,897 | 21,545 | 23,192 |
| Total stockholders’ equity | US$ in thousands | 428,620 | 464,391 | 494,004 | 594,409 | 518,657 | 590,210 | 612,914 | 633,354 | 560,513 | 642,736 | 671,684 | 679,607 | 569,042 | 587,127 | 579,268 | 510,209 | 297,839 | 261,199 | 299,804 | 367,279 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.06 | 0.08 | 0.07 | 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 of Sonos Inc has been consistently low over the past several quarters, indicating that the company has relied more on equity financing rather than debt to fund its operations. The ratio has been at 0.00 for the most recent quarters, suggesting that the company has no debt or very minimal debt compared to its equity. However, there has been a slight increase in the ratio from 0.06 in September 2020 to 0.08 in June 2020, and then a decrease to 0.07 in March 2020.
The low debt-to-equity ratio is generally viewed positively by investors and creditors as it signifies lower financial risk and a strong financial position. It implies that the company has a lower level of financial leverage and is less vulnerable to economic downturns or fluctuations in interest rates. Sonos Inc's consistent low debt-to-equity ratio reflects prudent financial management and a conservative approach to capital structure.
Peer comparison
Sep 30, 2024