Guess? Inc. (GES)
Financial leverage ratio
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,590,020 | 2,478,780 | 2,489,160 | 2,440,720 | 2,425,450 | 2,316,620 | 2,316,670 | 2,250,010 | 2,555,630 | 2,562,440 | 2,456,900 | 2,378,010 | 2,465,870 | 2,380,010 | 2,310,730 | 2,346,750 | 2,428,960 | 2,390,900 | 2,402,200 | 2,381,760 |
| Total stockholders’ equity | US$ in thousands | 684,940 | 514,060 | 488,897 | 452,000 | 534,113 | 418,828 | 410,843 | 403,063 | 622,658 | 625,337 | 610,318 | 554,195 | 543,663 | 459,803 | 438,268 | 471,654 | 639,714 | 567,060 | 554,872 | 547,557 |
| Financial leverage ratio | 3.78 | 4.82 | 5.09 | 5.40 | 4.54 | 5.53 | 5.64 | 5.58 | 4.10 | 4.10 | 4.03 | 4.29 | 4.54 | 5.18 | 5.27 | 4.98 | 3.80 | 4.22 | 4.33 | 4.35 |
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 analyzed periods. The ratio measures the proportion of the company's debt to its equity, indicating the extent to which the company relies on borrowed funds for its operations.
The trend indicates an increase in financial leverage from the beginning of 2020 to mid-2022, peaking at 5.64 in July 2022. This suggests that the company had a higher proportion of debt relative to equity during this period. However, there was a slight decline in the ratio towards the end of 2022 and throughout 2023.
The ratio hit its lowest point at 3.80 in February 2020, indicating comparatively lower reliance on debt during that period. The current ratio of 4.35 in May 2019 indicates an intermediate level of financial leverage between the highest and lowest points during the observed period.
Overall, the fluctuations in the financial leverage ratio suggest that Guess? Inc. has been adjusting its capital structure, possibly taking on more or less debt at different points in time. Investors and stakeholders may use this information to assess the company's risk exposure and financial health.