Vestis Corporation (VSTS)
Debt-to-capital ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 877,360 | 2,335,810 | 2,331,980 | — |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | — |
September 30, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $877,360K)
= 0.00
The debt-to-capital ratio for Vestis Corporation has consistently been 0.00 over the past three years, including the most recent data as of September 30, 2023. This indicates that the company has not used any debt to finance its operations and has relied solely on equity financing during this period. While a debt-to-capital ratio of 0.00 may suggest a low financial risk due to the absence of debt, it is important to consider the potential impact on the company's cost of capital, return on equity, and growth opportunities. Monitoring changes in the debt-to-capital ratio over time can provide insights into Vestis Corporation's capital structure and financial risk management strategies.
Peer comparison
Sep 30, 2023