Williams-Sonoma Inc (WSM)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
January 28, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $2,127,860K
= 0.00
The debt-to-equity ratio for Williams-Sonoma Inc has consistently been 0.00 over the past five years, indicating that the company has not utilized any debt to finance its operations relative to its equity during this period. This low ratio suggests that Williams-Sonoma Inc has primarily relied on equity financing, signaling a conservative approach to managing its capital structure. It may also imply that the company has had sufficient internal funds or positive cash flows to support its growth and investment activities without resorting to external borrowing. However, while a lower debt-to-equity ratio typically signifies lower financial risk and greater financial stability, it may also indicate a missed opportunity to leverage debt for potential growth or tax advantages. Investors and stakeholders should consider the reasons behind Williams-Sonoma Inc's consistent 0.00 debt-to-equity ratio and assess whether it aligns with the company's strategic objectives and financial performance.