Calavo Growers Inc (CVGW)
Financial leverage ratio
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 386,854 | 385,746 | 445,402 | 429,624 | 390,360 |
| Total stockholders’ equity | US$ in thousands | 208,837 | 222,356 | 225,515 | 254,530 | 284,181 |
| Financial leverage ratio | 1.85 | 1.73 | 1.98 | 1.69 | 1.37 |
October 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $386,854K ÷ $208,837K
= 1.85
The financial leverage ratio measures the extent to which a company employs debt in its capital structure. Calavo Growers, Inc's financial leverage ratio has exhibited variation over the past five years, ranging from 1.37 in 2019 to 1.98 in 2021. The ratio indicates that the company's reliance on debt has fluctuated, with a peak in 2021 and a subsequent decrease in 2022, followed by a slight increase in 2023. This suggests that the company's capital structure has experienced changes, potentially impacting its risk profile and financial stability. It would be prudent to further investigate the factors influencing these fluctuations to assess their implications for the company's long-term financial health.