Thor Industries Inc (THO)
Debt-to-capital ratio
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,101,260 | 1,291,310 | 1,754,240 | 1,594,820 | 1,652,830 |
| Total stockholders’ equity | US$ in thousands | 4,067,430 | 3,976,020 | 3,592,860 | 2,921,840 | 2,319,780 |
| Debt-to-capital ratio | 0.21 | 0.25 | 0.33 | 0.35 | 0.42 |
July 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,101,260K ÷ ($1,101,260K + $4,067,430K)
= 0.21
The debt-to-capital ratio of Thor Industries Inc has exhibited a declining trend over the past five years, suggesting an improvement in the company's capital structure and reduced reliance on debt financing. The ratio decreased from 0.42 in July 2020 to 0.21 in July 2024, indicating a significant reduction in the proportion of total debt relative to the total capital employed by the company.
This downward trend in the debt-to-capital ratio reflects Thor Industries Inc's efforts to lower its financial leverage and strengthen its financial position. A decreasing debt-to-capital ratio can be viewed positively by investors and creditors as it signifies that the company is becoming less dependent on debt to finance its operations and growth initiatives.
Overall, the declining trend in Thor Industries Inc's debt-to-capital ratio highlights an improvement in the company's financial health and ability to manage its debt obligations effectively. This trend may enhance the company's creditworthiness and long-term sustainability.
Peer comparison
Jul 31, 2024