WD-40 Company (WDFC)
Debt-to-assets ratio
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 85,977 | 109,743 | 107,139 | 114,940 | 113,098 |
| Total assets | US$ in thousands | 449,039 | 437,966 | 434,295 | 430,203 | 362,637 |
| Debt-to-assets ratio | 0.19 | 0.25 | 0.25 | 0.27 | 0.31 |
August 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $85,977K ÷ $449,039K
= 0.19
WD-40 Company's debt-to-assets ratio has shown a decreasing trend over the past five years, indicating a stronger financial position in terms of debt management. The ratio decreased from 0.31 in 2020 to 0.19 in 2024, showcasing an improvement in the company's ability to cover its liabilities with its assets. A lower debt-to-assets ratio suggests that the company relies less on debt financing to support its operations and investments, which can reduce financial risk and increase financial stability. WD-40 Company's decreasing trend in the debt-to-assets ratio reflects a positive trajectory in its financial health and a prudent approach to managing its debt levels relative to its asset base.
Peer comparison
Aug 31, 2024