Diageo (Diageo) Debt-to-Equity : 2.19 (As of Dec. 2023)

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What is Diageo Debt-to-Equity?

Diageo's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $2,004 Mil. Diageo's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $19,476 Mil. Diageo's Total Stockholders Equity for the quarter that ended in Dec. 2023 was $9,791 Mil. Diageo's debt to equity for the quarter that ended in Dec. 2023 was 2.19.

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 Diageo's Debt-to-Equity or its related term are showing as below:

DGEAF' s Debt-to-Equity Range Over the Past 10 Years
Min: 0.9 Med: 1.54 Max: 2.55
Current: 2.19

During the past 13 years, the highest Debt-to-Equity Ratio of Diageo was 2.55. The lowest was 0.90. And the median was 1.54.

DGEAF's Debt-to-Equity is ranked worse than
95.05% of 182 companies
in the Beverages - Alcoholic industry
Industry Median: 0.385 vs DGEAF: 2.19

Diageo Debt-to-Equity Historical Data

The historical data trend for Diageo'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.

Diageo Debt-to-Equity Chart

Diageo Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Debt-to-Equity

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1.52

2.55

2.19

2.10

2.17

Diageo Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Debt-to-Equity	Get a 7-Day Free Trial															1.81	2.10	2.16	2.17	2.19

Competitive Comparison of Diageo's Debt-to-Equity

For the Beverages - Wineries & Distilleries subindustry, Diageo'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.

Diageo's Debt-to-Equity Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Diageo's Debt-to-Equity distribution charts can be found below:

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

Diageo Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

Diageo's Debt to Equity Ratio for the fiscal year that ended in Jun. 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
	=	(2240.077	+	19139.034)	/	9865.923
	=	2.17

Diageo's Debt to Equity Ratio for the quarter that ended in Dec. 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
	=	(2004	+	19476)	/	9791
	=	2.19

Diageo (OTCPK:DGEAF) 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.

Diageo Debt-to-Equity Related Terms

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

Diageo (Diageo) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Alcoholic » Diageo PLC (OTCPK:DGEAF) » Definitions » Debt-to-Equity

Comparable Companies

Traded in Other Exchanges

DEO:USA DEON:Mexico DGEl:UK DGED:UK DGE:UK GUI:Germany DEOP34:Brazil DEO:Argentina

Address

16 Great Marlborough Street, London, GBR, W1F 7HS

Website

https://www.diageo.com

The product of a merger between Grand Metropolitan and Guinness in 1997, Diageo is one of the world's leading producers of branded premium spirits, approximately level with Kweichow Moutai in revenue terms. It also produces and markets beer and wine. Brands include Johnnie Walker blended scotch, Smirnoff vodka, Crown Royal Canadian whiskey, Captain Morgan rum, Casamigos tequila, Tanqueray gin, Baileys Irish Cream, and Guinness stout. Diageo also owns 34% of premium champagne and cognac maker Moet Hennessy, a subsidiary of French luxury-goods maker LVMH Moet Hennessy-Louis Vuitton, and a near-56% stake in India's United Spirits.