Victoria's Secret & Co (VSCO)
Debt-to-capital ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | ||
|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,120,000 | 1,271,000 | 978,000 |
| Total stockholders’ equity | US$ in thousands | 417,000 | 383,000 | 257,000 |
| Debt-to-capital ratio | 0.73 | 0.77 | 0.79 |
February 3, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,120,000K ÷ ($1,120,000K + $417,000K)
= 0.73
The debt-to-capital ratio of Victoria's Secret & Co has shown a decreasing trend over the past three years, indicating a positive sign for the company's financial health. As of February 3, 2024, the ratio stands at 0.73, down from 0.77 in January 28, 2023, and 0.79 in January 29, 2022.
This gradual decline suggests that the company has been able to decrease its reliance on debt funding in relation to its total capital structure. A lower debt-to-capital ratio signifies a lower level of financial risk, as the company is using a smaller proportion of debt to finance its operations compared to its equity.
Overall, the decreasing trend in Victoria's Secret & Co's debt-to-capital ratio reflects a prudent financial management strategy, potentially enhancing the company's ability to withstand economic downturns and capitalize on growth opportunities in the future.
Peer comparison
Feb 3, 2024