BJs Wholesale Club Holdings Inc (BJ)
Financial leverage ratio
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,677,620 | 6,837,240 | 6,603,900 | 6,494,500 | 6,349,960 | 6,478,900 | 6,387,240 | 6,010,000 | 5,668,890 | 5,710,240 | 5,347,600 | 5,449,210 | 5,411,530 | 5,482,280 | 5,294,020 | 5,328,070 | 5,269,780 | 5,478,080 | 5,152,090 | 5,226,720 |
| Total stockholders’ equity | US$ in thousands | 1,458,850 | 1,353,700 | 1,231,290 | 1,131,730 | 1,046,840 | 942,875 | 853,591 | 721,342 | 648,108 | 567,736 | 488,352 | 413,524 | 319,327 | 217,378 | 119,101 | 32,497 | -54,344 | -104,486 | -164,586 | -148,309 |
| Financial leverage ratio | 4.58 | 5.05 | 5.36 | 5.74 | 6.07 | 6.87 | 7.48 | 8.33 | 8.75 | 10.06 | 10.95 | 13.18 | 16.95 | 25.22 | 44.45 | 163.96 | — | — | — | — |
February 3, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,677,620K ÷ $1,458,850K
= 4.58
The financial leverage ratio of BJs Wholesale Club Holdings Inc has been increasing steadily over the past several periods, from 4.58 in February 2024 to 5.05 in October 2023, 5.36 in July 2023, and further up to 5.74 in April 2023. However, starting from January 2023, the ratio experienced a more significant upward trend, reaching 8.75 by January 2022. Subsequently, the ratio increased substantially to 13.18 in July 2021, 16.95 in January 2021, and peaked at 25.22 in October 2020, indicating a significantly higher level of financial leverage. In the most recent periods, the financial leverage ratio has reached extraordinary levels, such as 44.45 in August 2020 and 163.96 in May 2020.
The increasing trend in the financial leverage ratio suggests that BJs Wholesale Club Holdings Inc has been relying more on debt financing to support its operations and growth. A high financial leverage ratio indicates a higher proportion of debt in the company's capital structure, which can potentially amplify returns on equity when business is good but also increases financial risk and interest obligations, especially during economic downturns or challenging operating conditions. Therefore, stakeholders should closely monitor the company's ability to manage its debt levels and service its financial obligations effectively.
Peer comparison
Feb 3, 2024