National Vision Holdings Inc (EYE)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,007,770 | 2,172,510 | 2,291,250 | 2,293,090 | 2,333,500 |
| Total stockholders’ equity | US$ in thousands | 816,333 | 829,418 | 901,113 | 925,980 | 906,502 |
| Financial leverage ratio | 2.46 | 2.62 | 2.54 | 2.48 | 2.57 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,007,770K ÷ $816,333K
= 2.46
The financial leverage ratio of National Vision Holdings Inc has been relatively stable over the past five years, ranging from 2.46 to 2.62. This ratio indicates that the company relies more on debt financing rather than equity to fund its operations and investments. A high financial leverage ratio can amplify the company's returns on equity when operating profit is higher than the cost of borrowed funds but can also increase financial risk during economic downturns or periods of low profitability. Despite some fluctuations, National Vision Holdings Inc's financial leverage ratio suggests its conservative approach to leveraging its capital structure.
Peer comparison
Dec 31, 2024