Victoria's Secret & Co (VSCO)
Debt-to-equity ratio
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,120,000 | 1,530,000 | 1,270,000 | 1,271,000 | 1,271,000 | 1,244,000 | 977,000 | 977,000 | 978,000 | 978,000 | 689,000 |
| Total stockholders’ equity | US$ in thousands | 417,000 | 220,000 | 279,000 | 265,000 | 383,000 | 235,000 | 247,000 | 227,000 | 257,000 | 252,000 | 884,000 |
| Debt-to-equity ratio | 2.69 | 6.95 | 4.55 | 4.80 | 3.32 | 5.29 | 3.96 | 4.30 | 3.81 | 3.88 | 0.78 |
February 3, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,120,000K ÷ $417,000K
= 2.69
The debt-to-equity ratio of Victoria's Secret & Co has shown fluctuations over the past year, indicating changes in the company's capital structure and financial leverage. The ratio increased from 0.78 in July 2021 to 6.95 in October 2023, suggesting a significant rise in debt relative to equity during this period. Subsequently, there was a decrease to 2.69 in February 2024, indicating a reduction in debt compared to equity.
These fluctuations may reflect the company's borrowing activities, repayment of debt, or changes in shareholder equity. A higher debt-to-equity ratio implies higher financial risk, as the company relies more on debt financing, which can lead to increased interest payments and potential solvency issues in case of financial distress.
It would be important to further investigate the reasons behind these changes in the debt-to-equity ratio to assess the company's financial health and risk profile accurately. A thorough analysis of Victoria's Secret & Co's debt levels, capital structure, and overall financial performance would provide a comprehensive understanding of its leverage position.
Peer comparison
Feb 3, 2024