WD-40 Company (WDFC)
Debt-to-equity 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-equity ratio | 0.37 | 0.52 | 0.57 | 0.57 | 0.71 |
August 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $85,977K ÷ $230,526K
= 0.37
The debt-to-equity ratio of WD-40 Company has shown a decreasing trend over the past five years, indicating a strengthening financial position in terms of leverage. As of August 31, 2024, the company's debt-to-equity ratio stands at 0.37, reflecting a significant improvement from the ratio of 0.71 reported on August 31, 2020. This signifies that WD-40 has reduced its reliance on debt financing in favor of equity financing, which can be interpreted as a positive sign for investors and creditors. The declining trend in the debt-to-equity ratio may indicate that the company is effectively managing its debt levels and maintaining a healthy balance between debt and equity in its capital structure. Overall, the decreasing debt-to-equity ratio suggests that WD-40 Company has been successful in reducing its financial risk and improving its financial stability over the past five years.
Peer comparison
Aug 31, 2024