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

Company name
Symbol
Financial leverage ratio
Deere & Company
DE
4.70
AGCO Corporation
AGCO
2.45
Alamo Group Inc
ALG
1.51
Lindsay Corporation
LNN
1.58