WD-40 Company (WDFC)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 230,526 | 210,178 | 188,624 | 200,382 | 160,313 |
| Debt-to-capital ratio | 0.27 | 0.34 | 0.36 | 0.36 | 0.41 |
August 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $85,977K ÷ ($85,977K + $230,526K)
= 0.27
The debt-to-capital ratio of WD-40 Company has shown a declining trend over the past five years, decreasing from 0.41 in August 2020 to 0.27 in August 2024. This indicates that the company has been relying less on debt financing in relation to its total capital structure over the years. A lower debt-to-capital ratio suggests that the company has a more conservative approach to leveraging its operations and may have a stronger financial position with a higher proportion of equity in its capital structure. Overall, the decreasing trend in the debt-to-capital ratio for WD-40 Company reflects a potentially improving financial health and reduced financial risk associated with the company's capital structure.
Peer comparison
Aug 31, 2024