Westpac Banking (ASX:WBC) Debt-to-Equity : 2.62 (As of Sep. 2023)

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What is Westpac Banking Debt-to-Equity?

Westpac Banking's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was A$22,687 Mil. Westpac Banking's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was A$167,062 Mil. Westpac Banking's Total Stockholders Equity for the quarter that ended in Sep. 2023 was A$72,495 Mil. Westpac Banking's debt to equity for the quarter that ended in Sep. 2023 was 2.62.

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

ASX:WBC' s Debt-to-Equity Range Over the Past 10 Years
Min: 2.19 Med: 2.98 Max: 3.56
Current: 2.62

During the past 13 years, the highest Debt-to-Equity Ratio of Westpac Banking was 3.56. The lowest was 2.19. And the median was 2.98.

ASX:WBC's Debt-to-Equity is ranked worse than
90.52% of 1393 companies
in the Banks industry
Industry Median: 0.68 vs ASX:WBC: 2.62

Westpac Banking Debt-to-Equity Historical Data

The historical data trend for Westpac Banking'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.

Westpac Banking Debt-to-Equity Chart

Westpac Banking Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Debt-to-Equity

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3.11

2.56

2.19

2.50

2.62

Westpac Banking 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															2.19	2.32	2.50	2.48	2.62

Competitive Comparison of Westpac Banking's Debt-to-Equity

For the Banks - Diversified subindustry, Westpac Banking'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.

Westpac Banking's Debt-to-Equity Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Westpac Banking's Debt-to-Equity distribution charts can be found below:

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

Westpac Banking Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

Westpac Banking'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
	=	(22687	+	167062)	/	72495
	=	2.62

Westpac Banking'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
	=	(22687	+	167062)	/	72495
	=	2.62

Westpac Banking (ASX:WBC) 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.

Westpac Banking Debt-to-Equity Related Terms

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

Westpac Banking (ASX:WBC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Westpac Banking Corp (ASX:WBC) » Definitions » Debt-to-Equity

Comparable Companies

Traded in Other Exchanges

WEBNF:USA WBC:New Zealand WBC:Germany WBCPL.PFD:Australia WBCPK.PFD:Australia WBCPJ.PFD:Australia WBCPI.PFD:Australia WBCPH.PFD:Australia WBCPG.PFD:Australia WBCPF.PFD:Australia

Address

275 Kent Street, Sydney, NSW, AUS, 2000

Website

https://www.westpac.com.au

Westpac is Australia's oldest bank and financial services group, with a significant franchise in Australia and New Zealand in the consumer, small business, corporate, and institutional sectors, in addition to its major presence in wealth management. Westpac is among a handful of banks around the globe currently retaining very high credit ratings. The bank benefits from a large national branch network and significant market share, particularly in home loans and retail deposits.