Vista Outdoor Inc (VSTO)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 1,126,300 | 1,131,790 | 1,124,400 | 736,997 | 442,505 |
| Debt-to-equity ratio | 0.64 | 0.87 | 0.59 | 0.67 | 1.16 |
March 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $717,238K ÷ $1,126,300K
= 0.64
The debt-to-equity ratio for Vista Outdoor Inc has fluctuated over the past five years, with a decreasing trend observed from 2020 to 2022, followed by a slight increase in 2023, and a further decrease in 2024.
In 2020, the ratio was high at 1.16, indicating that the company was highly leveraged with a significant amount of debt relative to its equity. However, there was a substantial improvement in 2022, as the ratio declined to 0.59, suggesting a decreased reliance on debt funding and a stronger equity position.
The ratio increased in 2023 to 0.87, signifying a higher proportion of debt compared to equity. Nonetheless, in 2024, the ratio decreased to 0.64, indicating a more balanced capital structure with less reliance on debt financing relative to equity.
Overall, the downward trend in the debt-to-equity ratio from 2020 to 2022 followed by a stabilization and a slight decrease in 2024 suggests that Vista Outdoor Inc has been actively managing its debt levels and working towards a more sustainable capital structure. This improvement may enhance the company's financial stability and reduce its financial risk over time.
Peer comparison
Mar 31, 2024