Cavco Industries Inc (CVCO)
Financial leverage ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,354,160 | 1,307,980 | 1,154,970 | 951,833 | 810,431 |
| Total stockholders’ equity | US$ in thousands | 1,033,410 | 976,286 | 830,455 | 683,640 | 607,586 |
| Financial leverage ratio | 1.31 | 1.34 | 1.39 | 1.39 | 1.33 |
March 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,354,160K ÷ $1,033,410K
= 1.31
The financial leverage ratio of Cavco Industries Inc has exhibited a slight decline over the past five years, indicating a trend towards lower financial leverage. The ratio decreased from 1.39 in both 2022 and 2021 to 1.31 in 2024. This suggests that the company has been relying less on debt to finance its operations and investments. A lower financial leverage ratio generally indicates a lower degree of financial risk and improved financial stability, as the company has less debt relative to its equity. This trend could be a positive sign for investors as it implies a more conservative capital structure and potentially lower interest expenses. However, it is important to consider the overall business strategy and industry norms when evaluating the impact of changes in the financial leverage ratio.