Woodward Inc (WWD)

Debt-to-equity ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	653,029	645,709	651,443	652,119	649,093	709,760	716,744	728,247	729,826	734,122	739,062	736,095	745,464	736,849	729,165	869,223	729,176	864,899	1,011,150	1,000,470
Total stockholders’ equity	US$ in thousands	2,190,060	2,070,990	2,085,790	2,012,050	1,939,440	1,901,120	1,909,610	2,051,880	2,223,430	2,214,780	2,201,690	2,133,300	2,063,460	1,992,680	1,909,770	1,907,690	1,798,600	1,726,740	1,704,310	1,702,660
Debt-to-equity ratio		0.30	0.31	0.31	0.32	0.33	0.37	0.38	0.35	0.33	0.33	0.34	0.35	0.36	0.37	0.38	0.46	0.41	0.50	0.59	0.59

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $653,029K ÷ $2,190,060K
= 0.30

Woodward Inc's debt-to-equity ratio has been fluctuating in recent quarters, ranging from 0.33 to 0.43. A debt-to-equity ratio of 0.33 in Q1 2024 indicates that the company has $0.33 in debt for every $1 of equity. This suggests that Woodward Inc is relying more on equity financing rather than debt financing to support its operations and growth.

The slight increase in the debt-to-equity ratio from Q1 2024 to Q4 2023 may indicate that the company has taken on slightly more debt relative to its equity in the most recent quarter. However, this ratio is still relatively low, indicating a conservative capital structure.

Looking back over the past eight quarters, there is a general trend of the debt-to-equity ratio fluctuating within a relatively narrow range of 0.33 to 0.43. This demonstrates a level of stability in Woodward Inc's capital structure and financing decisions over this period.

Overall, the debt-to-equity ratio analysis suggests that Woodward Inc has been maintaining a conservative financial leverage strategy, which may be viewed positively by investors and creditors due to the lower financial risk associated with less debt in the capital structure.