Woodward Inc (WWD)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 2,176,420 | 2,070,990 | 1,901,120 | 2,214,780 | 1,992,680 |
| Debt-to-capital ratio | 0.21 | 0.24 | 0.27 | 0.25 | 0.27 |
September 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $569,751K ÷ ($569,751K + $2,176,420K)
= 0.21
The debt-to-capital ratio of Woodward Inc has been showing a declining trend over the past five years, decreasing from 0.27 in 2020 to 0.21 in 2024. This ratio indicates the proportion of a company's capital that is financed through debt. A lower debt-to-capital ratio suggests that the company relies less on debt financing and has a stronger equity base to support its operations.
Woodward Inc's decreasing debt-to-capital ratio could signify effective debt management and a strengthening financial position. It suggests that the company has been reducing its reliance on debt over the years, which can reduce financial risk and improve stability. However, it is important to consider the context of the industry and overall financial strategy of the company when evaluating this ratio.
Overall, Woodward Inc's decreasing debt-to-capital ratio indicates a positive trend in terms of its capital structure and financial health. Investors and stakeholders may view this trend favorably as it reflects a prudent approach to managing the company's capital structure.