Vestis Corporation (VSTS)
Debt-to-equity 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-equity ratio | 1.27 | 0.00 | 0.00 | 0.00 | — |
September 30, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,147,730K ÷ $903,051K
= 1.27
The debt-to-equity ratio of Vestis Corporation has shown a significant increase from 0.00 in the previous years to 1.27 as of September 30, 2024. This suggests that the company has utilized more debt financing relative to equity financing in its capital structure. A higher debt-to-equity ratio indicates a higher level of financial leverage, which can amplify returns on equity but also increase financial risk. It is essential for investors and stakeholders to closely monitor this ratio to assess the company's financial stability and risk management practices. Further analysis of the company's debt profile and overall financial health would be necessary to fully interpret the implications of this changing ratio.
Peer comparison
Sep 30, 2024