Greenbrier Companies Inc (GBX)
Financial leverage ratio
| 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 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 2,990,640 | 2,513,190 |
| Total stockholders’ equity | US$ in thousands | 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 | 1,276,730 | 1,262,320 |
| Financial leverage ratio | 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 | 2.34 | 1.99 |
February 29, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,043,600K ÷ $1,299,900K
= 3.11
The financial leverage ratio of Greenbrier Companies Inc has been relatively stable over the past few years, ranging between 1.99 and 3.18. The ratio measures the extent to which the company relies on debt to finance its operations and growth.
From February 2019 to February 2024, the leverage ratio has shown an upward trend, increasing from 1.99 to 3.18. This indicates that the company has been increasingly using debt to fund its activities or investments during this period.
A higher financial leverage ratio suggests higher financial risk due to increased reliance on debt financing, as the company needs to meet interest payments and debt obligations. On the other hand, a lower ratio indicates a conservative approach, with less dependence on debt.
Investors and creditors closely monitor the financial leverage ratio of a company to assess its ability to repay debt and manage financial risk. Greenbrier Companies Inc's trend of increasing leverage may indicate a strategic shift towards utilizing debt to support growth. However, it is important to closely monitor the company's ability to service its debt in the long term to ensure financial stability.
Peer comparison
Feb 29, 2024