WD-40 Company (WDFC)
Debt-to-equity ratio
| Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 85,977 | 85,473 | 85,894 | 86,173 | 109,743 | 108,893 | 108,309 | 107,902 | 107,139 | 110,189 | 112,809 | 112,729 | 114,940 | 116,498 | 116,731 | 114,712 | 113,098 | 94,566 | 61,117 | 61,152 |
| Total stockholders’ equity | US$ in thousands | 230,526 | 222,242 | 216,278 | 215,932 | 210,178 | 205,827 | 197,272 | 191,370 | 188,624 | 195,229 | 198,850 | 198,398 | 200,382 | 202,632 | 187,580 | 174,500 | 160,313 | 144,983 | 147,959 | 145,992 |
| Debt-to-equity ratio | 0.37 | 0.38 | 0.40 | 0.40 | 0.52 | 0.53 | 0.55 | 0.56 | 0.57 | 0.56 | 0.57 | 0.57 | 0.57 | 0.57 | 0.62 | 0.66 | 0.71 | 0.65 | 0.41 | 0.42 |
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 for WD-40 Company has shown fluctuation over the past several quarters, ranging from 0.37 to 0.71. A lower debt-to-equity ratio indicates that the company relies less on debt financing and is using more equity to finance its operations, which can be seen in the lower ratios observed in some periods.
The ratio peaked at 0.71 in November 2020 and has since decreased, with some variations along the way. Overall, the trend in recent periods has been a decrease from the peak, indicating a potential shift towards a more conservative capital structure with lower leverage.
It is essential to continue monitoring the debt-to-equity ratio to assess the company's financial leverage and risk management strategies, as changes in this ratio can impact the company's financial stability and growth opportunities.
Peer comparison
Aug 31, 2024