Five Below Inc (FIVE)
Financial leverage ratio
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,339,570 | 3,872,040 | 3,872,040 | 3,324,910 | 3,324,910 |
| Total stockholders’ equity | US$ in thousands | 577,849,000 | 1,584,960 | 1,584,960 | 1,361,930 | 1,361,930 |
| Financial leverage ratio | 0.01 | 2.44 | 2.44 | 2.44 | 2.44 |
January 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,339,570K ÷ $577,849,000K
= 0.01
The financial leverage ratio of Five Below Inc has remained consistent at 2.44 from January 28, 2023, to February 3, 2024. This indicates that the company relies more on debt financing relative to equity to finance its operations and growth. However, there is a significant drop in the financial leverage ratio to 0.01 as of January 31, 2025. This sudden decrease suggests a substantial reduction in the use of debt in the company's capital structure, possibly indicating a shift towards a more conservative financing approach. It would be important to further investigate the reasons behind this significant change in the financial leverage ratio to understand the company's financial strategy and risk profile.
Peer comparison
Jan 31, 2025