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Smiths Group (LSE:SMIN) Debt-to-Equity : 0.32 (As of Jan. 2024)


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What is Smiths Group Debt-to-Equity?

Smiths Group's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2024 was £40 Mil. Smiths Group's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2024 was £633 Mil. Smiths Group's Total Stockholders Equity for the quarter that ended in Jan. 2024 was £2,104 Mil. Smiths Group's debt to equity for the quarter that ended in Jan. 2024 was 0.32.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

The historical rank and industry rank for Smiths Group's Debt-to-Equity or its related term are showing as below:

LSE:SMIN' s Debt-to-Equity Range Over the Past 10 Years
Min: 0.27   Med: 0.68   Max: 0.95
Current: 0.32

During the past 13 years, the highest Debt-to-Equity Ratio of Smiths Group was 0.95. The lowest was 0.27. And the median was 0.68.

LSE:SMIN's Debt-to-Equity is ranked worse than
52.16% of 2619 companies
in the Industrial Products industry
Industry Median: 0.29 vs LSE:SMIN: 0.32

Smiths Group Debt-to-Equity Historical Data

The historical data trend for Smiths Group's Debt-to-Equity can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Smiths Group Debt-to-Equity Chart

Smiths Group Annual Data
Trend Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23
Debt-to-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.64 0.66 0.63 0.43 0.27

Smiths Group Semi-Annual Data
Jul14 Jan15 Jul15 Jan16 Jul16 Jan17 Jul17 Jan18 Jul18 Jan19 Jul19 Jan20 Jul20 Jan21 Jul21 Jan22 Jul22 Jan23 Jul23 Jan24
Debt-to-Equity Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.47 0.43 0.49 0.27 0.32

Competitive Comparison of Smiths Group's Debt-to-Equity

For the Specialty Industrial Machinery subindustry, Smiths Group's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Smiths Group's Debt-to-Equity Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Smiths Group's Debt-to-Equity distribution charts can be found below:

* The bar in red indicates where Smiths Group's Debt-to-Equity falls into.


Smiths Group Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

Smiths Group's Debt to Equity Ratio for the fiscal year that ended in Jul. 2023 is calculated as

Debt to Equity=Total Debt / Total Stockholders Equity
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Total Stockholders Equity
=(29 + 625) / 2384
=0.27

Smiths Group's Debt to Equity Ratio for the quarter that ended in Jan. 2024 is calculated as

Debt to Equity=Total Debt / Total Stockholders Equity
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Total Stockholders Equity
=(40 + 633) / 2104
=0.32

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Smiths Group  (LSE:SMIN) Debt-to-Equity Explanation

In the calculation of Debt to Equity, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by Total Stockholders Equity. In some calculations, Total Liabilities is used to for calculation.

Be Aware

Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.

Smiths Group Debt-to-Equity Related Terms

Thank you for viewing the detailed overview of Smiths Group's Debt-to-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.

Smiths Group (LSE:SMIN) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Smiths Group PLC (LSE:SMIN) » Definitions » Debt-to-Equity
Comparable Companies
LSE:WEIR LSE:SPX LSE:IMI LSE:MRO LSE:ROR LSE:BOY LSE:MGAM LSE:GDWN LSE:ITM LSE:CGS XTER:SIE XPAR:SU ETN OSTO:ATCO A ITW PH XKRX:373220 EMR AME CMI
Traded in Other Exchanges
SMGZY:USA SMGKF:USA SMINl:UK QS2A:Germany
Address
11-12 St James’s Square, 4th Floor, London, GBR, SW1Y 4LB
Website
https://www.smiths.com
With its start as a London jeweler in the 19th century, Smiths Group has for most of its history operated as a company operating disparate but economically attractive businesses. Thematically, it runs businesses that manufacture niche products in security- or safety-sensitive industries. Today, the business is split across four divisions: mechanical seals, weapons detection, electrical connectors, and specialized hoses. The end customers for these products include airports, NASA, government security or defense departments, and hospitals.