Thor Industries Inc (THO)
Debt-to-equity 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-equity ratio | 0.27 | 0.32 | 0.49 | 0.55 | 0.71 |
July 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,101,260K ÷ $4,067,430K
= 0.27
The debt-to-equity ratio of Thor Industries Inc has shown a downward trend over the past five years, decreasing from 0.71 in July 2020 to 0.27 in July 2024. This indicates that the company has been gradually reducing its reliance on debt financing in relation to equity financing. A lower debt-to-equity ratio suggests a stronger financial position, as it signifies that the company has a lower proportion of debt relative to its equity.
The decreasing trend in the debt-to-equity ratio may imply that Thor Industries Inc has been effectively managing its debt levels, which could reduce financial risk and enhance its ability to weather economic uncertainties. By maintaining a lower debt-to-equity ratio, the company may also be better positioned to take advantage of growth opportunities or withstand potential downturns in the market.
Overall, the declining debt-to-equity ratio of Thor Industries Inc reflects a positive trajectory in terms of its capital structure and financial stability. However, it is important to monitor future trends and assess the company's ability to maintain an optimal balance between debt and equity financing for sustainable growth.
Peer comparison
Jul 31, 2024