Deere & Company (DE)
Financial leverage ratio
Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | ||
---|---|---|---|---|---|---|
Total assets | US$ in thousands | 107,320,000 | 104,087,000 | 90,030,000 | 84,114,000 | 75,091,000 |
Total stockholders’ equity | US$ in thousands | 22,836,000 | 21,785,000 | 20,262,000 | 18,431,000 | 12,937,000 |
Financial leverage ratio | 4.70 | 4.78 | 4.44 | 4.56 | 5.80 |
October 27, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $107,320,000K ÷ $22,836,000K
= 4.70
Deere & Company's financial leverage ratio has shown a fluctuating trend over the past five years. The ratio decreased from 5.80 in November 2020 to 4.44 in October 2022, indicating an improvement in the company's ability to meet its financial obligations with equity rather than debt. However, the ratio then increased to 4.56 in October 2021 and further to 4.78 in October 2023, suggesting a slight increase in the company's reliance on debt to finance its operations.
In the most recent period, as of October 27, 2024, the financial leverage ratio further decreased to 4.70, indicating a slight improvement in the company's financial structure compared to the previous year. Despite some fluctuations, the company has maintained its financial leverage within a relatively narrow range over the past five years. It is essential for investors and analysts to closely monitor the trends in the financial leverage ratio to assess Deere & Company's capital structure and risk of financial distress.
Peer comparison
Oct 27, 2024