Guess? Inc. (GES)
Financial leverage ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,590,020 | 2,425,450 | 2,555,630 | 2,465,870 | 2,428,960 |
| Total stockholders’ equity | US$ in thousands | 684,940 | 534,113 | 622,658 | 543,663 | 639,714 |
| Financial leverage ratio | 3.78 | 4.54 | 4.10 | 4.54 | 3.80 |
February 3, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,590,020K ÷ $684,940K
= 3.78
The financial leverage ratio of Guess? Inc. has shown fluctuations over the past five fiscal years. The ratio was 3.80 in February 2020, increased to 4.54 in January 2021, then decreased to 4.10 in January 2022, before rising again to 4.54 in January 2023, and finally decreasing to 3.78 in February 2024. This indicates that the company's reliance on debt financing in relation to equity has varied significantly over the years. The downward trend in the financial leverage ratio from 2023 to 2024 suggests a potential improvement in the company's financial structure and reduced risk associated with higher debt levels. However, it is important to further analyze the components of the company's capital structure and consider other financial ratios to gain a comprehensive understanding of Guess? Inc.'s overall financial health and risk management.