Williams-Sonoma Inc (WSM)
Debt-to-capital ratio
| Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Nov 1, 2020 | Aug 2, 2020 | May 3, 2020 | Feb 2, 2020 | Nov 3, 2019 | Aug 4, 2019 | May 5, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | 0 | 0 | 0 | 0 | 299,173 | 298,995 | 299,868 | — | 299,769 | 299,719 | 299,670 |
| Total stockholders’ equity | US$ in thousands | 2,127,860 | 1,813,230 | 1,620,960 | 1,466,820 | 1,701,050 | 1,412,930 | 1,278,280 | 1,309,740 | 1,664,210 | 1,543,370 | 1,526,720 | 1,447,300 | 1,651,180 | 1,401,900 | 1,332,920 | 1,218,930 | 1,235,860 | 1,131,890 | 1,121,600 | 1,121,770 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.18 | 0.18 | 0.20 | 0.00 | 0.21 | 0.21 | 0.21 |
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 for the majority of the reported periods, indicating that the company primarily relies on equity financing rather than debt to fund its operations and investments. However, there was a notable increase in the ratio in November 2020, reaching 0.18 and subsequently rising to 0.20 in February 2020. This indicates that the company took on some level of debt compared to its capital during that period.
It is important to note that a debt-to-capital ratio of 0.18 to 0.21 is still relatively low, suggesting that Williams-Sonoma Inc maintains a conservative approach to debt usage and may have a strong financial position with a significant portion of its capital coming from equity. Further analysis would be required to understand the specific reasons behind the increase in debt levels during the mentioned periods and assess the impact on the company's overall financial health and leverage position.