Ethan Allen Interiors Inc (ETD)
Financial leverage ratio
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 744,917 | 742,216 | 722,175 | 739,563 | 745,453 | 741,323 | 713,981 | 721,849 | 719,895 | 714,903 | 689,328 | 678,294 | 683,245 | 687,546 | 636,219 | 622,521 | 622,789 | 703,104 | 621,927 | 653,899 |
| Total stockholders’ equity | US$ in thousands | 482,980 | 477,391 | 472,926 | 462,584 | 471,028 | 453,203 | 437,085 | 415,772 | 407,349 | 383,976 | 365,769 | 345,070 | 351,443 | 356,602 | 347,579 | 332,941 | 328,065 | 339,224 | 362,788 | 370,447 |
| Financial leverage ratio | 1.54 | 1.55 | 1.53 | 1.60 | 1.58 | 1.64 | 1.63 | 1.74 | 1.77 | 1.86 | 1.88 | 1.97 | 1.94 | 1.93 | 1.83 | 1.87 | 1.90 | 2.07 | 1.71 | 1.77 |
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 exhibited some fluctuations over the past few quarters, ranging from 1.53 to 2.07. The ratio indicates the company's reliance on debt financing to support its operations and growth initiatives.
A higher financial leverage ratio suggests a higher level of debt relative to equity in the company's capital structure, which could potentially amplify returns for shareholders during periods of growth, but also increases financial risk in times of economic downturn or rising interest rates. Conversely, a lower ratio indicates a more conservative capital structure with less reliance on debt financing.
The trend in Ethan Allen's financial leverage ratio shows a general increase over the period under consideration, reaching a peak of 2.07 in the first quarter of 2020 before slightly decreasing in recent quarters. This escalating trend may indicate a shift towards more aggressive leveraging to fund investments or expansion opportunities.
It is important for investors and stakeholders to carefully monitor changes in the financial leverage ratio of Ethan Allen Interiors Inc to assess the company's overall financial risk profile and ability to meet its debt obligations in the future.
Peer comparison
Jun 30, 2024