Deere & Company (DE)
Financial leverage ratio
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | Nov 3, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 104,087,000 | 90,030,000 | 84,114,000 | 75,091,000 | 73,011,000 |
| Total stockholders’ equity | US$ in thousands | 21,785,000 | 20,262,000 | 18,431,000 | 12,937,000 | 11,413,000 |
| Financial leverage ratio | 4.78 | 4.44 | 4.56 | 5.80 | 6.40 |
October 29, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $104,087,000K ÷ $21,785,000K
= 4.78
The financial leverage ratio of Deere & Co. has fluctuated over the past five years. The ratio indicates how much of the company's assets are financed by debt compared to equity.
In 2023, the financial leverage ratio was 4.78, indicating that for every dollar of equity, the company had $4.78 of total assets. This represents an increase from the previous year, suggesting a higher level of leverage.
In 2022, the financial leverage ratio was 4.44, showing a decrease from the prior year. This indicates a lower reliance on debt to finance assets compared to equity.
In 2021, the ratio increased to 4.56, indicating a slight rise in leverage compared to the previous year.
The financial leverage ratio was notably higher in 2020 and 2019, with values of 5.80 and 6.40 respectively. This suggests that the company had a higher level of debt relative to equity in those years.
Overall, the fluctuation in the financial leverage ratio over the years indicates varying levels of reliance on debt financing, potentially reflecting changes in the company's capital structure and financial risk.
Peer comparison
Oct 29, 2023