Grocery Outlet Holding Corp (GO)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,969,590 | 2,772,400 | 2,669,810 | 2,485,620 | 2,185,530 |
| Total stockholders’ equity | US$ in thousands | 1,219,340 | 1,110,210 | 1,009,270 | 922,307 | 745,384 |
| Financial leverage ratio | 2.44 | 2.50 | 2.65 | 2.70 | 2.93 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,969,590K ÷ $1,219,340K
= 2.44
The financial leverage ratio of Grocery Outlet Holding Corp has shown a decreasing trend over the past five years, indicating a reduction in the company's reliance on debt to finance its operations. The ratio decreased from 2.93 in 2019 to 2.44 in 2023. This suggests that the company has been able to improve its financial position by reducing its debt levels relative to its equity. A lower financial leverage ratio generally signifies a lower financial risk for the company as it indicates a lower proportion of debt in its capital structure. Grocery Outlet Holding Corp's decreasing trend in financial leverage ratio reflects a positive development in its capital structure management.
Peer comparison
Dec 31, 2023