Cracker Barrel Old Country Store (CBRL)

Financial leverage ratio

		Aug 2, 2024	Jul 28, 2023	Jul 29, 2022	Jul 30, 2021	Jul 31, 2020
Total assets	US$ in thousands	2,161,490	2,218,090	2,294,910	2,391,690	2,544,260
Total stockholders’ equity	US$ in thousands	440,149	483,825	511,479	663,633	418,389
Financial leverage ratio		4.91	4.58	4.49	3.60	6.08

August 2, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,161,490K ÷ $440,149K
= 4.91

The financial leverage ratio for Cracker Barrel Old Country Store has shown fluctuations over the past five years. The ratio has been gradually increasing from 3.60 in July 2020 to 4.91 in August 2024. This indicates that the company's reliance on debt to finance its operations and growth has been increasing over the years. A higher financial leverage ratio suggests a higher level of debt relative to equity in the company's capital structure, which may indicate increased financial risk. The significant fluctuations in the ratio over the years may imply changes in the company's capital structure and financial strategy. It would be important for stakeholders to closely monitor this trend and assess the company's ability to manage its debt levels effectively.