Vestis Corporation (VSTS)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | — |
September 30, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $877,360K
= 0.00
The debt-to-equity ratio for Vestis Corporation has consistently been reported as 0.00 for the years ending September 30, 2021, 2022, and 2023, indicating that the company has no debt on its balance sheet relative to its equity during these periods. The lack of debt in the capital structure suggests that Vestis Corporation has been funding its operations and investments primarily through equity financing rather than taking on debt. This may imply a lower financial risk and a more conservative approach to capital structure, as the absence of debt can reduce interest expenses and financial obligations. However, it is also important to consider the potential implications of having an extremely low debt-to-equity ratio, such as limited tax advantages and potential constraints on leveraging opportunities for future growth and expansion.
Peer comparison
Sep 30, 2023