Vestis Corporation (VSTS)
Debt-to-capital ratio
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,147,730 | 1,394,530 | 1,410,850 | 1,454,800 | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 903,051 | 901,177 | 900,711 | 904,158 | 877,360 | 913,757 | 904,989 | 2,335,810 | 2,335,810 | — |
| Debt-to-capital ratio | 0.56 | 0.61 | 0.61 | 0.62 | 0.00 | 0.00 | 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 fluctuating trend over the past quarters. As of September 30, 2024, the ratio stands at 0.56, indicating that 56% of the company's capital is financed by debt.
Looking back at the previous periods, we see that the ratio has varied between 0.56 to 0.62 over the past year. It is noteworthy that the ratio was 0.00 in the quarters ending September 30, 2023, and June 30, 2023, suggesting that there was no debt financing during those periods.
Overall, the downward trend in the debt-to-capital ratio from December 2023 to September 2024 indicates a decreasing reliance on debt to fund the company's operations and investments. This could be a positive sign as lower debt levels may imply lower financial risk and greater financial stability for Vestis Corporation. However, a thorough analysis of the company's overall financial health and capital structure would be necessary to fully understand the implications of these changes in the debt-to-capital ratio.
Peer comparison
Sep 30, 2024