Caseys General Stores Inc (CASY)

Financial leverage ratio

		Apr 30, 2024	Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019
Total assets	US$ in thousands	6,347,430	6,207,010	6,227,460	6,062,350	5,943,270	5,840,620	5,790,460	5,679,140	5,505,730	5,401,940	5,252,110	5,075,970	4,460,310	4,396,990	4,323,670	4,098,990	3,943,890	3,922,030	3,865,870	3,836,750
Total stockholders’ equity	US$ in thousands	3,015,380	2,947,460	2,897,390	2,776,300	2,660,670	2,606,780	2,512,820	2,380,050	2,240,840	2,185,610	2,123,130	2,030,660	1,932,680	1,893,590	1,859,850	1,751,240	1,643,200	1,588,590	1,561,850	1,489,210
Financial leverage ratio		2.11	2.11	2.15	2.18	2.23	2.24	2.30	2.39	2.46	2.47	2.47	2.50	2.31	2.32	2.32	2.34	2.40	2.47	2.48	2.58

April 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,347,430K ÷ $3,015,380K
= 2.11

The financial leverage ratio of Caseys General Stores Inc has been gradually increasing over the past few quarters, indicating a higher level of financial leverage. This suggests that the company is relying more on debt to finance its operations and growth.

The financial leverage ratio stood at 2.11 in April 2020 and has steadily risen to 2.58 by July 2019. This upward trend may indicate that the company is taking on more debt relative to its equity, which can enhance returns for shareholders if the company generates higher profits with the borrowed funds.

However, a high financial leverage ratio also implies higher financial risk, as the company may have difficulty meeting its debt obligations in case of financial difficulties or economic downturns. Investors and stakeholders should closely monitor this ratio to assess the company's ability to manage its debt levels effectively and sustain its financial health in the long term.