Capri Holdings Ltd (CPRI)
Financial leverage ratio
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,689,000 | 7,617,000 | 7,346,000 | 7,409,000 | 7,295,000 | 7,554,000 | 7,202,000 | 7,610,000 | 7,480,000 | 7,680,000 | 7,493,000 | 7,624,000 | 7,481,000 | 7,765,000 | 7,803,000 | 7,533,000 | 7,946,000 | 8,325,000 | 8,393,000 | 8,308,000 |
| Total stockholders’ equity | US$ in thousands | 1,599,000 | 1,934,000 | 1,911,000 | 1,811,000 | 1,848,000 | 2,223,000 | 2,143,000 | 2,377,000 | 2,559,000 | 2,776,000 | 2,602,000 | 2,452,000 | 2,158,000 | 2,356,000 | 2,199,000 | 2,006,000 | 2,167,000 | 2,609,000 | 2,405,000 | 2,321,000 |
| Financial leverage ratio | 4.18 | 3.94 | 3.84 | 4.09 | 3.95 | 3.40 | 3.36 | 3.20 | 2.92 | 2.77 | 2.88 | 3.11 | 3.47 | 3.30 | 3.55 | 3.76 | 3.67 | 3.19 | 3.49 | 3.58 |
March 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,689,000K ÷ $1,599,000K
= 4.18
The financial leverage ratio of Capri Holdings Ltd has shown fluctuations over the past few quarters, ranging from 2.77 to 4.18. Generally, a higher financial leverage ratio indicates higher financial risk due to a larger proportion of debt in the company's capital structure.
In the most recent quarter, as of March 31, 2024, the financial leverage ratio increased to 4.18 from the previous quarter's 3.94, suggesting that the company's reliance on debt to finance its operations and growth has increased. This could potentially lead to higher interest payments and a greater financial risk for the company.
Looking at the trend over the past few quarters, the financial leverage ratio has been on an upward trajectory since the second quarter of 2022 when it was at 3.20. This indicates a consistent increase in the company's debt levels relative to its equity, which could be a strategic decision to fuel expansion or acquisitions.
It's important for investors and stakeholders to closely monitor the financial leverage ratio of Capri Holdings Ltd to assess the company's ability to manage its debt effectively and sustain its financial stability in the long run.
Peer comparison
Mar 31, 2024