Ethan Allen Interiors Inc (ETD)
Financial leverage ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 744,917 | 745,453 | 719,895 | 683,245 | 622,789 |
| Total stockholders’ equity | US$ in thousands | 482,980 | 471,028 | 407,349 | 351,443 | 328,065 |
| Financial leverage ratio | 1.54 | 1.58 | 1.77 | 1.94 | 1.90 |
June 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $744,917K ÷ $482,980K
= 1.54
The financial leverage ratio of Ethan Allen Interiors Inc has shown a decreasing trend over the past five years. The ratio decreased from 1.90 in 2020 to 1.54 in 2024, indicating a reduction in the company's reliance on debt to finance its operations and assets. This decline suggests that the company has been effectively managing its debt levels and may have been paying down its debt over the years.
A lower financial leverage ratio typically signifies lower financial risk and greater financial stability for the company. It indicates that Ethan Allen Interiors Inc has a lower proportion of debt in its capital structure compared to equity, implying that it may have a stronger ability to meet its financial obligations and withstand economic downturns.
Overall, the decreasing trend in the financial leverage ratio for Ethan Allen Interiors Inc is a positive indicator of the company's financial health and prudent debt management practices.
Peer comparison
Jun 30, 2024