Capri Holdings Ltd (CPRI)
Financial leverage ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,689,000 | 7,295,000 | 7,480,000 | 7,481,000 | 7,946,000 |
| Total stockholders’ equity | US$ in thousands | 1,599,000 | 1,848,000 | 2,559,000 | 2,158,000 | 2,167,000 |
| Financial leverage ratio | 4.18 | 3.95 | 2.92 | 3.47 | 3.67 |
March 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,689,000K ÷ $1,599,000K
= 4.18
The financial leverage ratio for Capri Holdings Ltd has exhibited fluctuations over the past five years. In the most recent period as of March 31, 2024, the ratio stands at 4.18, representing a significant increase compared to the prior year. This suggests that the company's reliance on debt to finance its operations and investments has intensified. Additionally, the current ratio is notably higher compared to the ratios of the two preceding years, indicating a heightened level of financial leverage.
On the other hand, the financial leverage ratio for Capri Holdings Ltd was relatively lower in the fiscal year ended March 31, 2022, as well as in the fiscal year ended March 31, 2020, compared to the more recent years. This implies that the company had a lower level of debt compared to its equity during those periods.
Overall, the trend in Capri Holdings Ltd's financial leverage ratio suggests that the company has varied in its dependency on debt financing over the past five years, with the most recent year showing a significant increase in leverage. Investors and stakeholders may want to closely monitor this trend to assess the company's ability to manage its debt levels effectively.
Peer comparison
Mar 31, 2024