Vista Outdoor Inc (VSTO)
Debt-to-assets ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 717,238 | 984,658 | 666,114 | 495,564 | 511,806 |
| Total assets | US$ in thousands | 2,402,380 | 2,798,880 | 2,396,200 | 1,764,940 | 1,394,880 |
| Debt-to-assets ratio | 0.30 | 0.35 | 0.28 | 0.28 | 0.37 |
March 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $717,238K ÷ $2,402,380K
= 0.30
The debt-to-assets ratio of Vista Outdoor Inc has shown variability over the past five years. In the most recent fiscal year ending March 31, 2024, the ratio stands at 0.30, indicating that 30% of the company's total assets are financed by debt. This represents a decrease compared to the previous year's ratio of 0.35, suggesting a slight improvement in the company's leverage position.
Looking further back, the ratio was higher at 0.37 in FY 2020, implying that 37% of total assets were funded by debt. The company managed to decrease its debt reliance in subsequent years, with the ratio dropping to 0.28 in both FY 2022 and FY 2021. This reduction could be interpreted positively as the company potentially sought to lower its financial risk and enhance its financial stability by relying less on debt financing.
Overall, the trend of decreasing debt-to-assets ratios over the past few years indicates that Vista Outdoor Inc has been actively managing its debt levels relative to its asset base. It suggests a more conservative approach to financing its operations, which could lead to improved financial health and greater resilience to economic uncertainties in the future.
Peer comparison
Mar 31, 2024