Vestis Corporation (VSTS)
Debt-to-capital ratio
| 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 | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 904,158 | 877,360 | 913,757 | 904,989 | 2,335,810 | 2,335,810 | — |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $904,158K)
= 0.00
The debt-to-capital ratio of Vestis Corporation, as indicated in the provided table, has consistently been at 0.00 for the past seven quarters, including the latest data available for December 31, 2023. This ratio implies that the company has not utilized debt as a source of capital relative to its overall capital structure. While a debt-to-capital ratio of 0.00 may signify a conservative financial strategy with low financial risk due to the absence of debt in the capital mix, it can also suggest limitations in terms of leveraging opportunities that could potentially enhance returns for shareholders. It is essential to assess the reasons behind the consistent zero debt-to-capital ratio to determine if it aligns with the company's strategic objectives and financial health.
Peer comparison
Dec 31, 2023