Safaricom (NAI:SCOM) Debt-to-Equity : 0.72 (As of Mar. 2024)

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What is Safaricom Debt-to-Equity?

Safaricom's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was KES51,465 Mil. Safaricom's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was KES111,568 Mil. Safaricom's Total Stockholders Equity for the quarter that ended in Mar. 2024 was KES226,349 Mil. Safaricom's debt to equity for the quarter that ended in Mar. 2024 was 0.72.

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

NAI:SCOM' s Debt-to-Equity Range Over the Past 10 Years
Min: 0.03 Med: 0.16 Max: 0.72
Current: 0.72

During the past 13 years, the highest Debt-to-Equity Ratio of Safaricom was 0.72. The lowest was 0.03. And the median was 0.16.

NAI:SCOM's Debt-to-Equity is ranked worse than
54.52% of 343 companies
in the Telecommunication Services industry
Industry Median: 0.65 vs NAI:SCOM: 0.72

Safaricom Debt-to-Equity Historical Data

The historical data trend for Safaricom'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.

Safaricom Debt-to-Equity Chart

Safaricom Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Debt-to-Equity

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0.16

0.22

0.61

0.65

0.72

Safaricom Semi-Annual Data
	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24
Debt-to-Equity	Get a 7-Day Free Trial															0.61	0.31	0.65	0.70	0.72

Competitive Comparison of Safaricom's Debt-to-Equity

For the Telecom Services subindustry, Safaricom'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.

Safaricom's Debt-to-Equity Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Safaricom's Debt-to-Equity distribution charts can be found below:

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

Safaricom Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

Safaricom's Debt to Equity Ratio for the fiscal year that ended in Mar. 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
	=	(51464.6	+	111567.5)	/	226349.1
	=	0.72

Safaricom's Debt to Equity Ratio for the quarter that ended in Mar. 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
	=	(51464.6	+	111567.5)	/	226349.1
	=	0.72

Safaricom (NAI:SCOM) 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.

Safaricom Debt-to-Equity Related Terms

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

Safaricom (NAI:SCOM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Safaricom PLC (NAI:SCOM) » Definitions » Debt-to-Equity

Comparable Companies

Traded in Other Exchanges

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Address

Safaricom House, Waiyaki Way, P.O. Box 66827, Westlands, Nairobi, KEN, 00800

Website

https://www.safaricom.co.ke

Safaricom PLC is a Kenya-based telecommunications company. The principal activities of the company are the provision of telecommunication services, providing a comprehensive range of integrated telecommunication services including voice and data both mobile and fixed, SMS, the internet, and m-pesa. The company also offers a wide range of devices such as Mobile handsets, mobile broadband modems, routers, tablets, and notebooks. The majority of its revenue comes from service revenues: Voice, m-pesa, mobile data, messaging, fixed data and other service revenue. The company serves both individual and corporate/enterprise customers.