Floor & Decor Holdings Inc (FND)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,050,480 | 4,662,550 | 4,351,240 | 3,730,700 | 2,880,420 |
| Total stockholders’ equity | US$ in thousands | 2,170,160 | 1,930,990 | 1,657,180 | 1,323,200 | 997,388 |
| Financial leverage ratio | 2.33 | 2.41 | 2.63 | 2.82 | 2.89 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,050,480K ÷ $2,170,160K
= 2.33
Floor & Decor Holdings Inc's financial leverage ratio has shown a declining trend over the past five years, decreasing from 2.89 as of December 31, 2020, to 2.33 as of December 31, 2024. This indicates that the company has been relying less on debt financing and more on equity financing to fund its operations and investments. A lower financial leverage ratio suggests a lower level of financial risk, as the company is less reliant on debt to support its activities. However, it is important to note that the ratio is still above 1, indicating that the company has some level of financial leverage in its capital structure. Overall, the decreasing trend in the financial leverage ratio may reflect a strategic shift towards a more conservative capital structure and a reduced risk of financial distress for Floor & Decor Holdings Inc.
Peer comparison
Dec 31, 2024