Floor & Decor Holdings Inc (FND)
Financial leverage ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,662,550 | 4,638,080 | 4,475,470 | 4,335,190 | 4,351,240 | 4,244,670 | 4,199,380 | 3,893,390 | 3,730,700 | 3,628,110 | 3,364,300 | 2,964,720 | 2,880,420 | 2,714,400 | 2,528,730 | 2,633,880 | 2,324,310 | 2,156,870 | 2,011,120 | 1,873,350 |
| Total stockholders’ equity | US$ in thousands | 1,930,990 | 1,885,480 | 1,809,780 | 1,728,420 | 1,657,180 | 1,582,620 | 1,494,290 | 1,402,420 | 1,323,200 | 1,264,910 | 1,179,600 | 1,080,720 | 997,388 | 931,505 | 850,496 | 809,289 | 764,336 | 723,040 | 670,888 | 619,961 |
| Financial leverage ratio | 2.41 | 2.46 | 2.47 | 2.51 | 2.63 | 2.68 | 2.81 | 2.78 | 2.82 | 2.87 | 2.85 | 2.74 | 2.89 | 2.91 | 2.97 | 3.25 | 3.04 | 2.98 | 3.00 | 3.02 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,662,550K ÷ $1,930,990K
= 2.41
Floor & Decor Holdings Inc's financial leverage ratio has been showing a general increasing trend over the past several quarters, starting at 2.41 in December 2019 and peaking at 3.25 in March 2020 before gradually declining to 2.98 in June 2020. However, it trended upwards again to 3.04 by September 2020 and has fluctuated around the 3.00 level in the subsequent quarters, with some minor fluctuations. A financial leverage ratio above 1 indicates that the company has more debt than equity in its capital structure.
The trend of increasing financial leverage suggests that Floor & Decor Holdings Inc has been relying more on debt financing relative to its equity over the periods analyzed. This could potentially signify an aggressive growth strategy, a need for capital for investments or operations, or could pose risks in terms of higher interest expenses and financial vulnerability in case of economic downturns.
Investors and stakeholders should consider the implications of a high financial leverage ratio, as it could indicate a higher level of financial risk for the company. Monitoring the trend of this ratio over time will be crucial to assess the company's ability to manage its debt levels effectively and sustain its operations and profitability in the long run.
Peer comparison
Dec 31, 2023