Foot Locker Inc (FL)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 2,890,000 | 3,293,000 | 3,243,000 | 2,776,000 | 2,473,000 |
| Debt-to-capital ratio | 0.12 | 0.11 | 0.11 | 0.03 | 0.05 |
February 3, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $395,000K ÷ ($395,000K + $2,890,000K)
= 0.12
The debt-to-capital ratio of Foot Locker Inc has been relatively stable over the past five fiscal years, ranging from 0.03 to 0.12. This ratio indicates the proportion of the company's capital that is funded by debt.
In general, a lower debt-to-capital ratio suggests that the company relies less on debt financing and has a stronger financial position. Foot Locker Inc's ratios of 0.03 and 0.05 in 2021 and 2020, respectively, indicate a conservative approach to debt usage during those years.
However, the increase to 0.12 in 2024 may suggest a higher reliance on debt financing in that period. It is important to further investigate the reasons behind this increase in the debt-to-capital ratio to assess the potential risks and implications for the company's financial health and operational strategies. Overall, the trend in Foot Locker Inc's debt-to-capital ratio highlights the importance of monitoring changes in capital structure and debt levels to understand the company's financial leverage and risk profile.
Peer comparison
Feb 3, 2024