Burlington Stores Inc (BURL)
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 | 7,706,840 | 7,493,700 | 6,915,540 | 7,003,880 | 7,269,600 | 7,101,510 | 6,733,360 | 6,933,480 | 7,089,510 | 7,277,830 | 6,992,500 | 7,051,040 | 6,781,090 | 6,908,800 | 6,369,930 | 6,640,680 | 5,593,860 | 5,507,590 | 5,046,440 | 5,065,240 |
| Total stockholders’ equity | US$ in thousands | 996,932 | 850,476 | 825,859 | 801,474 | 794,905 | 638,728 | 633,877 | 716,156 | 760,417 | 716,807 | 675,695 | 539,892 | 464,754 | 286,576 | 262,260 | 279,101 | 528,149 | 391,588 | 315,137 | 278,548 |
| Financial leverage ratio | 7.73 | 8.81 | 8.37 | 8.74 | 9.15 | 11.12 | 10.62 | 9.68 | 9.32 | 10.15 | 10.35 | 13.06 | 14.59 | 24.11 | 24.29 | 23.79 | 10.59 | 14.06 | 16.01 | 18.18 |
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 few quarters, ranging from around 7.73 to as high as 24.29. This ratio indicates the proportion of the company's assets that are financed by debt, with higher ratios suggesting a higher level of financial leverage.
It is observed that the financial leverage ratio was relatively stable at around 8-9 in early 2023, before increasing significantly in the latter part of 2023 and into 2024. The substantial increase in the ratio during this period may suggest that Burlington Stores Inc has taken on more debt to finance its operations or growth initiatives.
The spike in the financial leverage ratio to levels exceeding 20 in 2020 and 2021 raises concerns about the company's high debt levels relative to its equity. Such elevated levels of leverage could potentially signify increased financial risk for the company, as high debt levels can lead to higher interest expenses and reduced financial flexibility.
Overall, the trend in Burlington Stores Inc's financial leverage ratio indicates fluctuations in the company's capital structure and the extent of its reliance on debt financing. Investors and stakeholders should closely monitor this ratio to assess the company's ability to manage its debt obligations and maintain a healthy balance between debt and equity financing.
Peer comparison
Feb 3, 2024