Compass Group (LSE:CPG) Debt-to-Equity : 0.84 (As of Sep. 2023)

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What is Compass Group Debt-to-Equity?

Compass Group's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was £1,281 Mil. Compass Group's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was £3,034 Mil. Compass Group's Total Stockholders Equity for the quarter that ended in Sep. 2023 was £5,136 Mil. Compass Group's debt to equity for the quarter that ended in Sep. 2023 was 0.84.

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

LSE:CPG' s Debt-to-Equity Range Over the Past 10 Years
Min: 0.83 Med: 1.25 Max: 1.87
Current: 0.84

During the past 13 years, the highest Debt-to-Equity Ratio of Compass Group was 1.87. The lowest was 0.83. And the median was 1.25.

LSE:CPG's Debt-to-Equity is ranked better than
54.3% of 302 companies
in the Restaurants industry
Industry Median: 0.945 vs LSE:CPG: 0.84

Compass Group Debt-to-Equity Historical Data

The historical data trend for Compass 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.

Compass Group Debt-to-Equity Chart

Compass Group Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Debt-to-Equity

Get a 7-Day Free Trial

1.15

0.99

0.92

0.83

0.84

Compass Group Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Debt-to-Equity	Get a 7-Day Free Trial															0.92	0.75	0.83	0.80	0.84

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

For the Restaurants subindustry, Compass 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.

Compass Group's Debt-to-Equity Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Compass Group's Debt-to-Equity distribution charts can be found below:

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

Compass Group Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

Compass Group's Debt to Equity Ratio for the fiscal year that ended in Sep. 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
	=	(1281	+	3034)	/	5136
	=	0.84

Compass Group's Debt to Equity Ratio for the quarter that ended in Sep. 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
	=	(1281	+	3034)	/	5136
	=	0.84

Compass Group (LSE:CPG) 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.

Compass Group Debt-to-Equity Related Terms

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

Compass Group (LSE:CPG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Compass Group PLC (LSE:CPG) » Definitions » Debt-to-Equity

Comparable Companies

Traded in Other Exchanges

CMPGY:USA CMPGF:USA CPG:Mexico CPGl:UK XGR2:Germany

Address

Guildford Street, Compass House, Chertsey, Surrey, GBR, KT16 9BQ

Website

https://www.compass-group.com

Compass Group is the largest food-service company globally, operating in more than 50 countries with annual sales of more than GBP 25 billion. Compass Group's model stems from operating on-premises catering facilities, rather than centralised industrial kitchens. Food service is Compass' core focus and contributes more than 80% of revenue. In addition, the company provides support services to clients through activities including cleaning services, office services (for example, concierge services), grounds maintenance, and so on.