Williams-Sonoma Inc (WSM)
Debt-to-capital ratio
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | 0 | — |
| Total stockholders’ equity | US$ in thousands | 2,127,860 | 1,701,050 | 1,664,210 | 1,651,180 | 1,235,860 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
January 28, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $2,127,860K)
= 0.00
The debt-to-capital ratio for Williams-Sonoma Inc has been consistently at 0.00 over the past five years, indicating that the company has not used any debt to finance its operations relative to its total capital. This suggests that Williams-Sonoma Inc relies more on equity financing, which can be seen as a positive indicator of financial stability and lower financial risk. It also implies that the company may have a strong balance sheet and effective capital structure management. However, it is important to note that a debt-to-capital ratio of 0.00 may also indicate that the company has not taken advantage of debt financing opportunities that could potentially enhance its growth or financial flexibility.