Calculated as: Total Debt / Shareholders Equity. Adidas AG (ADDYY) had Debt to Equity Ratio of 0.32 for the most recently reported fiscal year, ending 2021-12-31.
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What is a good ratio for debt ratio?
Key Takeaways
In general, many investors look for a company to have a debt ratio between 0.3 and 0.6. From a pure risk perspective, debt ratios of 0.4 or lower are considered better, while a debt ratio of 0.6 or higher makes it more difficult to borrow money.
What is Nike’s debt ratio?
1 Nike’s capital structure has high equity capital relative to debt, with a debt-to-equity ratio of 0.66, though this figure rose sharply in 2020 due to store closures.
What is Adidas current ratio?
It is calculated as a company’s Total Current Assets divides by its Total Current Liabilities. adidas AG’s current ratio for the quarter that ended in Jun. 2022 was 1.34. adidas AG has a current ratio of 1.34.
Is a debt ratio of 30% good?
By calculating the ratio between your income and your debts, you get your “debt ratio.” This is something the banks are very interested in. A debt ratio below 30% is excellent. Above 40% is critical. Lenders could deny you a loan.
What is Apple’s debt-to-equity ratio?
The debt/equity ratio can be defined as a measure of a company’s financial leverage calculated by dividing its long-term debt by stockholders’ equity. Apple debt/equity for the three months ending June 30, 2022 was 1.63.
What is a high debt ratio?
A debt ratio of greater than 1.0 or 100% means a company has more debt than assets while a debt ratio of less than 100% indicates that a company has more assets than debt. Some sources consider the debt ratio to be total liabilities divided by total assets.
Who are Nikes debtors?
Nike reported $4.67B in Trade Debtors for its first fiscal quarter of 2022.
| Trade Debtors | Change | |
|---|---|---|
| Ross Stores ROST:US | $ 164.07M | 44.82M |
| Skechers USA SKX:US | $ 971.82M | 110.7M |
| Steven Madden SHOO:US | $ 376.09M | 53.49M |
| Tapestry Inc TPR:US | $ 416.9M | 57.3M |
Is NIKE highly leveraged?
NIKE’s financial leverage last quarter was 2.6x. NIKE’s financial leverage for fiscal years ending May 2018 to 2022 averaged 2.9x. NIKE’s operated at median financial leverage of 2.6x from fiscal years ending May 2018 to 2022. Looking back at the last five years, NIKE’s financial leverage peaked in May 2020 at 3.9x.
Does NIKE have any debts?
What Is NIKE’s Net Debt? The chart below, which you can click on for greater detail, shows that NIKE had US$9.43b in debt in May 2022; about the same as the year before. However, its balance sheet shows it holds US$13.0b in cash, so it actually has US$3.57b net cash.
What is a good current ratio?
A good current ratio is between 1.2 to 2, which means that the business has 2 times more current assets than liabilities to covers its debts. A current ratio below 1 means that the company doesn’t have enough liquid assets to cover its short-term liabilities.
What is Nike’s liquidity?
Current and historical current ratio for NIKE (NKE) from 2010 to 2022. Current ratio can be defined as a liquidity ratio that measures a company’s ability to pay short-term obligations. NIKE current ratio for the three months ending May 31, 2022 was 2.63.
What is under Armour’s current ratio?
Under Armour has a current ratio of 2.06.
How much debt is healthy?
36%
Generally speaking, a good debt-to-income ratio is anything less than or equal to 36%. Meanwhile, any ratio above 43% is considered too high.
What does a low debt ratio mean?
A lower debt ratio usually implies a more stable business with the potential of longevity because a company with lower ratio also has lower overall debt. Each industry has its own benchmarks for debt, but . 5 is reasonable ratio. A debt ratio of . 5 is often considered to be less risky.
How do you know if a company has too much debt?
5 Warning Signs Your Business is in Too Much Debt
- Poor cash flow. Poor cash flow is a strong indicator of having too much business debt.
- Financial ratios aren’t healthy.
- Inability to pay debts.
- Low profitability.
- No access to finance.
What is Netflix debt-to-equity ratio?
0.7461
Netflix Debt to Equity Ratio: 0.7461 for June 30, 2022.
What is Disney’s debt-to-equity ratio?
Disney’s debt-to-equity ratio was 0.23 in the second quarter of 2019 and is now near 10-year highs. The company’s addition of Fox’s debt to its balance sheet has now made the company debt-heavy, in that its debt-to-assets ratio is at a 10-year high of 27%.
What is Amazon’s debt-to-equity ratio?
Amazon.com Inc. reports total assets of USD 321,195 million, total liabilities of USD 227,791 million, and total equity of USD 93,404 million in its balance sheet dated December 31, 2020. Based on the reported numbers, Amazon has a debt-to-equity ratio of 2.44 times.
What does a debt ratio of 0.5 mean?
What does a debt-to-equity ratio of 0.5 mean? A debt-to-equity ratio of 0.5 means a company relies twice as much on equity to drive growth than it does on debt, and that investors, therefore, own two-thirds of the company’s assets.
How important is debt ratio?
Key Takeaways
The debt to asset ratio is very important in determining the financial risk of a company. A ratio greater than 1 indicates that a significant portion of assets is funded with debt and that the company has a higher default risk. Therefore, the lower the ratio, the safer the company.