Grocery Outlet Holding Corp (GO)
Financial leverage ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,969,590 | 2,929,460 | 2,823,090 | 2,769,680 | 2,772,400 | 2,751,030 | 2,693,400 | 2,707,050 | 2,669,810 | 2,617,670 | 2,565,750 | 2,498,740 | 2,485,620 | 2,394,270 | 2,324,290 | 2,319,100 | 2,185,530 | 2,134,850 |
| Total stockholders’ equity | US$ in thousands | 1,219,340 | 1,203,090 | 1,164,810 | 1,127,540 | 1,110,210 | 1,085,310 | 1,056,690 | 1,024,070 | 1,009,270 | 994,031 | 973,883 | 948,086 | 922,307 | 888,826 | 833,401 | 784,628 | 745,384 | 730,878 |
| Financial leverage ratio | 2.44 | 2.43 | 2.42 | 2.46 | 2.50 | 2.53 | 2.55 | 2.64 | 2.65 | 2.63 | 2.63 | 2.64 | 2.70 | 2.69 | 2.79 | 2.96 | 2.93 | 2.92 |
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 been fluctuating over the past few quarters, ranging from 2.42 to 2.70. The ratio indicates that the company's level of debt relative to its equity has been consistently above 2, signaling a higher degree of financial leverage.
The highest leverage ratio was observed in March 2020 at 2.96, which may have indicated a significant reliance on debt financing at that time. Subsequently, the ratio decreased but remained relatively elevated until the end of 2022.
The trend reversed in 2023, with the leverage ratio increasing to 2.46 in March and peaking at 2.44 in December. This upward trajectory may suggest a shift towards a higher debt-to-equity ratio in the company's capital structure.
Overall, a financial leverage ratio above 2 indicates that Grocery Outlet Holding Corp has been utilizing a considerable amount of debt to finance its operations and growth, potentially increasing financial risk but also leveraging returns for shareholders. It is essential for stakeholders to monitor this ratio closely to assess the company's ability to meet its debt obligations and maintain a healthy balance between debt and equity financing.
Peer comparison
Dec 31, 2023