Five Below Inc (FIVE)

Financial leverage ratio

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Total assets	US$ in thousands	3,872,040	3,324,910	2,880,460	2,314,770	1,958,660
Total stockholders’ equity	US$ in thousands	1,584,960	1,361,930	1,120,280	881,886	759,778
Financial leverage ratio		2.44	2.44	2.57	2.62	2.58

February 3, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,872,040K ÷ $1,584,960K
= 2.44

The financial leverage ratio of Five Below Inc has remained relatively stable over the past five years, ranging between 2.44 and 2.62. This ratio indicates that the company relies on debt financing to a moderate extent to support its operations and growth initiatives. A financial leverage ratio above 1 signifies that the company has more debt than equity in its capital structure.

Although the ratio has fluctuated slightly from year to year, it has generally stayed within a narrow range, suggesting that Five Below Inc has maintained a consistent balance between debt and equity financing. A lower financial leverage ratio may indicate a lower risk of financial distress due to lower levels of debt, while a higher ratio may imply a higher financial risk due to increased dependence on debt.

Overall, the stability of Five Below Inc's financial leverage ratio indicates that the company has managed its debt levels effectively while also leveraging debt to support its expansion and investment strategies. It is important for investors and stakeholders to monitor changes in this ratio over time to assess the company's capital structure and financial risk.