Standex International Corporation (SXI)
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 | 148,876 | 173,441 | 174,830 | 199,490 | 199,150 |
| Total stockholders’ equity | US$ in thousands | 621,503 | 607,449 | 499,343 | 506,425 | 461,632 |
| Debt-to-capital ratio | 0.19 | 0.22 | 0.26 | 0.28 | 0.30 |
June 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $148,876K ÷ ($148,876K + $621,503K)
= 0.19
Standex International Corporation's debt-to-capital ratio has shown a declining trend over the past five years. The ratio decreased from 0.30 in June 2020 to 0.19 in June 2024. This indicates that the company has been relying less on debt and more on equity to finance its operations and investments. A decreasing debt-to-capital ratio generally suggests improved financial stability and a lower risk of financial distress as the proportion of debt relative to total capital decreases. However, it is essential to consider the optimal capital structure for the company and assess the impact of this trend on its overall financial health and ability to support future growth.
Peer comparison
Jun 30, 2024