Woodward Inc (WWD)
Debt-to-assets ratio
Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
---|---|---|---|---|---|---|
Long-term debt | US$ in thousands | 569,751 | 645,709 | 709,760 | 734,122 | 736,849 |
Total assets | US$ in thousands | 4,368,920 | 4,010,200 | 3,806,450 | 4,091,000 | 3,903,340 |
Debt-to-assets ratio | 0.13 | 0.16 | 0.19 | 0.18 | 0.19 |
September 30, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $569,751K ÷ $4,368,920K
= 0.13
The debt-to-assets ratio for Woodward Inc has exhibited a declining trend over the past five years, reflecting a decreasing reliance on debt to finance its assets. As of Sep 30, 2024, the ratio stands at 0.13, indicating that only 13% of the company's total assets are financed by debt. This suggests a strong ability to cover its obligations with its existing assets.
The decreasing trend from 0.19 in Sep 30, 2020, to 0.13 in Sep 30, 2024, indicates improved financial health and reduced financial risk for Woodward Inc. A lower debt-to-assets ratio implies that the company has a lower level of financial leverage, which can be viewed positively by investors and creditors as it signals a conservative approach to capital structure management.
Overall, the declining debt-to-assets ratio for Woodward Inc over the years reflects a prudent financial strategy focused on maintaining a healthy balance between debt and assets, enhancing the company's financial stability and resilience.