Foot Locker Inc (FL)
Financial leverage ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,868,000 | 7,907,000 | 8,135,000 | 7,043,000 | 6,589,000 |
| Total stockholders’ equity | US$ in thousands | 2,890,000 | 3,293,000 | 3,243,000 | 2,776,000 | 2,473,000 |
| Financial leverage ratio | 2.38 | 2.40 | 2.51 | 2.54 | 2.66 |
February 3, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,868,000K ÷ $2,890,000K
= 2.38
The financial leverage ratio of Foot Locker Inc has exhibited a declining trend over the past five years, decreasing from 2.66 in February 2020 to 2.38 in February 2024. This downward trend suggests that the company has been reducing its reliance on debt financing relative to equity over the period under review. A lower financial leverage ratio indicates a stronger equity position, which may enhance the company's overall financial stability and lower the risk associated with debt obligations. This trend could reflect management's efforts to improve the company's capital structure and potentially reduce financial risk.
Peer comparison
Feb 3, 2024