Woodward Inc (WWD)
Debt-to-equity 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-equity ratio | 0.26 | 0.31 | 0.37 | 0.33 | 0.37 |
September 30, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $569,751K ÷ $2,176,420K
= 0.26
The debt-to-equity ratio of Woodward Inc has shown a declining trend over the past five years, indicating an improving financial position in terms of leverage. The ratio decreased from 0.37 in 2020 to 0.26 in 2024. This decline suggests that the company has reduced its reliance on debt financing in relation to equity, which can be a positive sign for investors and creditors. A lower debt-to-equity ratio generally indicates lower financial risk and greater solvency for the company. Overall, the decreasing trend in the debt-to-equity ratio reflects a strengthening financial structure for Woodward Inc over the past five years.