Greenbrier Companies Inc (GBX)
Financial leverage ratio
| Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,254,500 | 4,115,800 | 4,043,600 | 4,014,700 | 3,978,400 | 3,921,700 | 3,952,500 | 3,817,100 | 3,851,500 | 3,706,100 | 3,612,700 | 3,470,000 | 3,390,700 | 3,210,170 | 3,059,360 | 3,046,080 | 3,173,800 | 3,279,030 | 2,947,660 | 2,948,780 |
| Total stockholders’ equity | US$ in thousands | 1,376,100 | 1,329,100 | 1,299,900 | 1,274,000 | 1,254,600 | 1,232,700 | 1,277,300 | 1,265,800 | 1,276,900 | 1,270,400 | 1,252,600 | 1,237,300 | 1,307,700 | 1,286,760 | 1,268,500 | 1,280,410 | 1,293,040 | 1,291,220 | 1,286,470 | 1,281,810 |
| Financial leverage ratio | 3.09 | 3.10 | 3.11 | 3.15 | 3.17 | 3.18 | 3.09 | 3.02 | 3.02 | 2.92 | 2.88 | 2.80 | 2.59 | 2.49 | 2.41 | 2.38 | 2.45 | 2.54 | 2.29 | 2.30 |
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 been fluctuating over the past few years. The ratio has shown an increasing trend from 2.29 in November 2019 to 3.11 in February 2024, before slightly declining to 3.09 in August 2024. This indicates that the company's reliance on debt to finance its operations has been increasing, with a peak observed in February 2024.
A financial leverage ratio above 1 indicates that the company has more debt than equity in its capital structure. A ratio of 3.11 in February 2024 suggests that Greenbrier Companies Inc had approximately $3.11 of debt for every $1 of equity during that period. Higher financial leverage ratios imply higher financial risk for the company, as increased debt levels can magnify both gains and losses.
It is important for investors and stakeholders to monitor the financial leverage ratio of Greenbrier Companies Inc to assess the company's ability to meet its debt obligations and manage financial risks effectively. The recent decline in the ratio from 3.11 to 3.09 in August 2024 may indicate a slight improvement in the company's debt management, but continued monitoring is advisable to ensure financial stability.
Peer comparison
Aug 31, 2024