Vestis Corporation (VSTS)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 903,051 | 877,360 | 2,335,810 | 2,331,980 | — |
| Debt-to-capital ratio | 0.56 | 0.00 | 0.00 | 0.00 | — |
September 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,147,730K ÷ ($1,147,730K + $903,051K)
= 0.56
The debt-to-capital ratio of Vestis Corporation has shown a significant increase from 0.00 in the previous years to 0.56 as of September 30, 2024. This indicates that the company's reliance on debt to finance its operations and investments has increased considerably in the most recent period. The uptrend in the debt-to-capital ratio suggests a shift towards a more leveraged capital structure, which could potentially increase financial risk and interest obligations for the company. It is important for stakeholders to closely monitor how Vestis Corporation manages its debt levels and assess the impact of this growing leverage on the overall financial health and sustainability of the business.
Peer comparison
Sep 30, 2024