Burlington Stores Inc (BURL)
Financial leverage ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 7,706,840 | 7,269,600 | 7,089,510 | 6,781,090 | 5,593,860 |
| Total stockholders’ equity | US$ in thousands | 996,932 | 794,905 | 760,417 | 464,754 | 528,149 |
| Financial leverage ratio | 7.73 | 9.15 | 9.32 | 14.59 | 10.59 |
February 3, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,706,840K ÷ $996,932K
= 7.73
The financial leverage ratio of Burlington Stores Inc has fluctuated over the past five years, ranging from 7.73 in February 2024 to 14.59 in January 2021. This ratio measures the company's level of debt relative to its equity, indicating that the company has carried higher levels of debt compared to equity in recent years. A higher financial leverage ratio suggests that the company is more reliant on debt financing, which can magnify returns but also increase financial risk. The decreasing trend from 2021 to 2024 may indicate a strategy to reduce debt levels or increase equity to improve the company's financial stability. It is important for investors and stakeholders to closely monitor changes in the financial leverage ratio as it can impact the company's ability to meet its financial obligations and overall financial health.
Peer comparison
Feb 3, 2024