John Wiley & Sons (WLY)
Debt-to-capital ratio
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 767,096 | 743,292 | 768,277 | 809,088 | 765,650 |
| Total stockholders’ equity | US$ in thousands | 739,716 | 1,045,030 | 1,142,270 | 1,091,290 | 933,624 |
| Debt-to-capital ratio | 0.51 | 0.42 | 0.40 | 0.43 | 0.45 |
April 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $767,096K ÷ ($767,096K + $739,716K)
= 0.51
The debt-to-capital ratio of John Wiley & Sons has exhibited fluctuations over the past five years. In the most recent period ending on April 30, 2024, the ratio stood at 0.51, indicating that approximately 51% of the company's capital structure was funded through debt. This represents an increase from the previous year when the ratio was 0.42.
Compared to the ratios in the preceding years, the debt-to-capital ratio has generally been within a range between 0.40 and 0.45. The ratio was at its lowest in April 2022 at 0.40 and reached its highest level in April 2024 at 0.51.
The upward trend in the debt-to-capital ratio over the past two years may suggest that John Wiley & Sons has been increasing its reliance on debt financing relative to its capital structure. This could indicate a strategic decision to leverage debt to fund operations, investments, or growth opportunities, or it may signify challenges in generating sufficient internal cash flows to fund operations and investments without resorting to additional debt.
Overall, monitoring the debt-to-capital ratio over time is crucial for assessing the company's financial health, risk profile, and capital structure decisions as it provides insights into the extent of leverage and financial risk in the business.
Peer comparison
Apr 30, 2024