Five Below Inc (FIVE)

Financial leverage ratio

		Feb 3, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	May 1, 2021	Jan 30, 2021	Oct 31, 2020	Aug 1, 2020	May 2, 2020	Feb 1, 2020	Nov 2, 2019	Aug 3, 2019	May 4, 2019
Total assets	US$ in thousands	3,872,040	3,657,440	3,549,410	3,380,510	3,324,910	3,163,720	3,086,230	2,960,780	2,880,460	2,823,450	2,622,930	2,443,730	2,314,770	2,175,500	2,000,250	1,932,720	1,958,660	1,833,750	1,659,420	1,592,280
Total stockholders’ equity	US$ in thousands	1,584,960	1,377,920	1,440,150	1,387,300	1,361,930	1,184,490	1,162,580	1,114,940	1,120,280	1,033,250	1,002,460	930,642	881,886	749,542	723,955	689,765	759,778	645,391	651,936	635,999
Financial leverage ratio		2.44	2.65	2.46	2.44	2.44	2.67	2.65	2.66	2.57	2.73	2.62	2.63	2.62	2.90	2.76	2.80	2.58	2.84	2.55	2.50

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 shown some fluctuations over the past several quarters, ranging from 2.44 to 2.90. The ratio indicates that the company relies more on debt to finance its operations rather than equity, as values above 1 suggest higher debt usage in the capital structure.

The trend in the financial leverage ratio shows some variation, with peaks and troughs observed over the analyzed periods. A higher financial leverage ratio implies a higher level of financial risk, as increased debt can amplify both gains and losses for shareholders.

It is essential for investors and stakeholders to monitor changes in the financial leverage ratio, as excessive debt levels can impact the company's ability to meet its financial obligations, especially in times of economic downturn or rising interest rates. Additionally, fluctuations in the ratio can signal changing strategies in the company's capital structure and financing decisions.