Crocs Inc (CROX)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,812,150 | 4,713,150 | 4,719,800 | 4,795,600 | 4,643,830 | 4,581,360 | 4,603,120 | 4,595,640 | 4,501,800 | 4,543,170 | 4,586,640 | 4,470,660 | 1,545,070 | 1,745,060 | 1,493,800 | 1,362,320 | 1,118,720 | 802,045 | 810,884 | 836,240 |
| Total stockholders’ equity | US$ in thousands | 1,835,730 | 1,725,120 | 1,653,210 | 1,597,060 | 1,453,920 | 1,200,260 | 1,189,690 | 968,500 | 817,931 | 630,802 | 491,965 | 349,170 | 14,082 | 352,831 | 358,764 | 326,231 | 290,633 | 227,987 | 156,884 | 94,029 |
| Financial leverage ratio | 2.62 | 2.73 | 2.85 | 3.00 | 3.19 | 3.82 | 3.87 | 4.75 | 5.50 | 7.20 | 9.32 | 12.80 | 109.72 | 4.95 | 4.16 | 4.18 | 3.85 | 3.52 | 5.17 | 8.89 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,812,150K ÷ $1,835,730K
= 2.62
The financial leverage ratio of Crocs Inc has shown a decreasing trend over the past few years, indicating an improvement in its financial leverage position. The ratio started at 8.89 in March 2020 and has gradually declined to 2.62 by December 2024.
A high leverage ratio suggests that a company relies heavily on debt to finance its operations, which can increase financial risk. Crocs Inc's sharp drop in the financial leverage ratio from over 100 in December 2021 to below 3 by December 2024 is a significant positive development, as it indicates a reduction in the dependency on debt financing.
The decreasing trend in the financial leverage ratio implies that Crocs Inc has been reducing its debt levels relative to its equity, which may lead to a more stable and sustainable capital structure. This improvement in financial leverage can enhance the company's financial flexibility and overall financial health in the long run.
Peer comparison
Dec 31, 2024