Buckle Inc (BKE)

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	889,810	921,207	861,547	848,860	837,579	884,147	809,064	789,034	780,884	993,830	932,685	916,207	845,814	897,879	855,823	801,650	867,890	898,115	872,433	880,365
Total stockholders’ equity	US$ in thousands	413,220	474,018	436,536	405,174	376,314	435,607	388,978	353,593	312,924	525,804	477,552	440,098	396,629	442,404	414,307	377,949	389,148	417,338	403,193	397,958
Financial leverage ratio		2.15	1.94	1.97	2.10	2.23	2.03	2.08	2.23	2.50	1.89	1.95	2.08	2.13	2.03	2.07	2.12	2.23	2.15	2.16	2.21

February 3, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $889,810K ÷ $413,220K
= 2.15

The financial leverage ratio of Buckle Inc has been fluctuating over the past several quarters. The ratio indicates the level of debt used by the company to finance its operations compared to its equity.

From the data provided, we observe that the financial leverage ratio ranged from a low of 1.89 to a high of 2.50. Generally, a higher financial leverage ratio suggests that the company relies more on debt financing, which can amplify returns when business is strong but also increase the risk during economic downturns.

Buckle Inc's financial leverage ratio peaked at 2.50 in January 2022, indicating a relatively high level of debt compared to equity at that point in time. Conversely, the lowest ratio of 1.89 occurred in October 2021, suggesting a lower reliance on debt financing relative to equity.

Overall, the trend in Buckle Inc's financial leverage ratio appears to have some variability, with periods of higher and lower leverage. This implies that the company adjusts its capital structure over time, potentially in response to changing business conditions or strategic considerations. Investors and stakeholders should monitor this ratio to assess the company's risk profile and financial stability.