Greenbrier Companies Inc (GBX)
Financial leverage ratio
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,254,500 | 3,978,400 | 3,851,500 | 3,390,700 | 3,173,800 |
| Total stockholders’ equity | US$ in thousands | 1,376,100 | 1,254,600 | 1,276,900 | 1,307,700 | 1,293,040 |
| Financial leverage ratio | 3.09 | 3.17 | 3.02 | 2.59 | 2.45 |
August 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,254,500K ÷ $1,376,100K
= 3.09
The financial leverage ratio of Greenbrier Companies Inc has shown a fluctuating trend over the past five years. The ratio increased from 2.45 in 2020 to 3.17 in 2023, indicating a significant rise in financial leverage during this period. However, in the following year, the ratio decreased to 3.02 in 2022 before rising again to 3.09 in 2024.
A financial leverage ratio above 1 suggests that the company is using debt to finance its operations. A higher financial leverage ratio often indicates higher financial risk due to increased debt obligations. Greenbrier's increasing trend in the financial leverage ratio from 2020 to 2023 may imply a higher level of debt relative to equity during those years, potentially increasing the company's financial risk.
It is essential for stakeholders to monitor Greenbrier's financial leverage ratio closely to ensure that the company maintains a healthy balance between debt and equity financing, managing its financial risk effectively while supporting growth and profitability.
Peer comparison
Aug 31, 2024