Albertsons Companies (ACI)
Financial leverage ratio
| Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 26,755,700 | 26,665,300 | 26,528,400 | 26,077,000 | 28,794,700 | 26,496,500 | 26,322,500 | 25,817,200 | 26,168,200 | 30,214,700 | 28,754,100 | 28,220,000 | 28,123,000 | 27,936,100 | 27,344,300 | 26,781,900 | 26,598,000 | 26,319,300 | 26,469,600 | 25,987,800 |
| Total stockholders’ equity | US$ in thousands | 3,385,900 | 3,365,700 | 3,020,300 | 2,913,100 | 2,747,500 | 2,527,300 | 2,216,600 | 2,000,000 | 1,656,400 | 819,000 | 4,387,000 | 4,070,600 | 3,024,600 | 2,310,700 | 1,959,900 | 1,698,400 | 1,324,300 | 1,374,700 | 1,501,600 | 1,194,900 |
| Financial leverage ratio | 7.90 | 7.92 | 8.78 | 8.95 | 10.48 | 10.48 | 11.88 | 12.91 | 15.80 | 36.89 | 6.55 | 6.93 | 9.30 | 12.09 | 13.95 | 15.77 | 20.08 | 19.15 | 17.63 | 21.75 |
February 28, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $26,755,700K ÷ $3,385,900K
= 7.90
The financial leverage ratio of Albertsons Companies demonstrates notable fluctuations over the period assessed. At the start of the observed timeline, on May 31, 2020, the ratio stood at approximately 21.75, indicating a high level of leverage with significant reliance on debt relative to equity. This elevated level persisted into August 2020, with the ratio decreasing to around 17.63, reflecting some reduction in leverage.
Throughout 2020 and into early 2021, there was a gradual decline in the leverage ratio, reaching a low of approximately 12.09 as of November 30, 2021. This trend suggests a strategic reduction in financial leverage, likely through debt repayment or some form of deleveraging strategy.
In 2022, the ratio experienced a pronounced spike, reaching approximately 36.89 on November 30, 2022. Such an increase indicates a substantial rise in leverage, which could be attributable to new debt issuance or a significant acquisition or investment that increased the company's debt burden.
Following this peak, the leverage ratio declined again in 2023 and early 2024, reaching values below 10 by November 2023 (specifically 10.48). The decreasing trend continued into 2024 with ratios approaching approximately 8.95 by May 2024, suggesting a consistent effort to reduce leverage levels and improve financial stability.
Overall, the company's leverage ratio exhibits a pattern of decline from high levels in 2020, with intermittent periods of increased leverage, notably in late 2022. The recent trend indicates a move toward lower leverage ratios, aligning with a potential strategic shift to strengthen financial flexibility and reduce debt dependence. The ongoing fluctuations reflect a dynamic capital structure management approach, influenced by market conditions, investment activities, and overall corporate financial strategies.
Peer comparison
Feb 28, 2025