Helen of Troy Ltd (HELE)
Financial leverage ratio
| Feb 28, 2025 | Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,132,080 | 2,838,620 | 2,913,720 | 2,823,450 | 2,263,490 |
| Total stockholders’ equity | US$ in thousands | 1,683,440 | 1,637,440 | 1,488,810 | 1,327,340 | 1,239,350 |
| Financial leverage ratio | 1.86 | 1.73 | 1.96 | 2.13 | 1.83 |
February 28, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,132,080K ÷ $1,683,440K
= 1.86
The financial leverage ratio of Helen of Troy Ltd has exhibited fluctuations over the past five years. The ratio stood at 1.83 on February 28, 2021, indicating that the company had $1.83 of debt for every $1 of equity. Subsequently, the ratio increased to 2.13 on February 28, 2022, signifying a higher level of financial leverage.
However, in the following years, the financial leverage ratio decreased to 1.96 on February 28, 2023, and further dropped to 1.73 on February 29, 2024, suggesting a reduced reliance on debt financing compared to equity financing. The ratio then slightly increased to 1.86 on February 28, 2025.
Overall, the trend in Helen of Troy Ltd's financial leverage ratio indicates some variability in the level of debt used to finance its operations. It is essential for stakeholders to closely monitor this ratio to assess the company's risk profile and financial stability.