Woodward Inc (WWD)

Debt-to-equity ratio

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Long-term debt	US$ in thousands	569,751	562,618	649,039	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
Total stockholders’ equity	US$ in thousands	2,176,420	2,159,210	2,329,410	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
Debt-to-equity ratio		0.26	0.26	0.28	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

September 30, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $569,751K ÷ $2,176,420K
= 0.26

Woodward Inc's debt-to-equity ratio has fluctuated over the past few years, ranging from 0.26 to 0.46. The ratio indicates the proportion of the company's debt financing relative to its equity financing. A lower ratio suggests a lower level of debt relative to equity, signaling a stronger financial position and lower financial risk.

It's observed that Woodward Inc's debt-to-equity ratio has shown a generally decreasing trend from 2019 to 2021, with the ratio declining from 0.46 to 0.33. This indicates a reduction in the company's reliance on debt financing during this period. However, from 2021 to 2024, the ratio has increased slightly, reaching 0.26-0.28 in recent quarters.

Overall, Woodward Inc's debt-to-equity ratio is relatively low, indicating a conservative approach to leverage. It's essential for stakeholders to monitor this ratio to ensure that the company's capital structure remains sustainable and aligned with its strategic objectives.