Vestis Corporation (VSTS)
Debt-to-assets ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,147,730 | — | — | — | — |
| Total assets | US$ in thousands | 2,932,390 | 3,157,120 | 3,133,010 | 3,108,380 | — |
| Debt-to-assets ratio | 0.39 | 0.00 | 0.00 | 0.00 | — |
September 30, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,147,730K ÷ $2,932,390K
= 0.39
The debt-to-assets ratio of Vestis Corporation has shown a significant increase over the years, from 0.00 in 2020 to 0.39 in 2024. This indicates that the company has started to utilize debt to finance its operations and investments, as a higher ratio suggests a greater portion of the company's assets is financed by debt. It is important to note that the sudden increase in the ratio may indicate a shift in Vestis Corporation's financing strategy towards leveraging debt to support its growth and expansion plans. This could potentially increase the company's financial risk, as higher levels of debt may lead to higher interest payments and financial vulnerability in case of economic downturns. Therefore, it is crucial for Vestis Corporation to effectively manage its debt levels and ensure sustainable growth in the long run.
Peer comparison
Sep 30, 2024