Foot Locker Inc (FL)
Debt-to-assets ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 395,000 | 395,000 | 394,000 | 100,000 | 122,000 |
| Total assets | US$ in thousands | 6,868,000 | 7,907,000 | 8,135,000 | 7,043,000 | 6,589,000 |
| Debt-to-assets ratio | 0.06 | 0.05 | 0.05 | 0.01 | 0.02 |
February 3, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $395,000K ÷ $6,868,000K
= 0.06
The debt-to-assets ratio of Foot Locker Inc has shown a fluctuating trend over the past five years. In the most recent fiscal year, as of February 3, 2024, the ratio stands at 0.06, indicating that the company has $0.06 in debt for every $1 of assets. This represents an increase compared to the previous year when the ratio was 0.05.
Looking further back, we observe that the ratio was also 0.05 in the fiscal year ending January 29, 2022, and 0.01 in the fiscal year ending January 30, 2021. The significant increase from 0.01 in 2021 to 0.05 in 2022 may indicate a change in the company's financing strategy during that period.
Comparing the most recent ratio to the one from two years ago, in the fiscal year ending February 1, 2020, of 0.02, we observe a notable uptrend in the debt-to-assets ratio, which suggests that Foot Locker Inc has taken on more debt relative to its assets in recent years.
Overall, a higher debt-to-assets ratio implies a greater dependency on debt financing, which can increase financial risk for the company. It would be important to further analyze Foot Locker Inc's financial position and performance to understand the reasons behind the changes in the debt-to-assets ratio and assess the associated implications for the company's overall financial health and stability.
Peer comparison
Feb 3, 2024