Woodward Inc (WWD)
Debt-to-capital ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 645,709 | 709,760 | 734,122 | 736,849 | 864,899 |
| Total stockholders’ equity | US$ in thousands | 2,070,990 | 1,901,120 | 2,214,780 | 1,992,680 | 1,726,740 |
| Debt-to-capital ratio | 0.24 | 0.27 | 0.25 | 0.27 | 0.33 |
September 30, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $645,709K ÷ ($645,709K + $2,070,990K)
= 0.24
The debt-to-capital ratio of Woodward Inc has shown fluctuating trends over the past five years. As of September 30, 2023, the ratio stands at 0.26, indicating that 26% of the company's capital is financed by debt. Compared to the previous year, there has been a decrease from 0.29 in 2022. This suggests that Woodward Inc has reduced its reliance on debt for capital funding.
The downward trend in the debt-to-capital ratio is a positive indication of the company's ability to manage its debt levels in relation to its overall capital structure. It may reflect prudent financial management and potentially lower financial risk. However, it is important to consider the reasons behind this decrease, as well as potential implications for the company's future operations and growth strategies. Overall, Woodward Inc's decreasing debt-to-capital ratio indicates an improvement in its overall financial health and capital structure management.