Helen of Troy Ltd (HELE)
Financial leverage ratio
| Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | Feb 29, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,838,620 | 2,913,720 | 2,823,450 | 2,263,490 | 1,903,880 |
| Total stockholders’ equity | US$ in thousands | 1,637,440 | 1,488,810 | 1,327,340 | 1,239,350 | 1,161,720 |
| Financial leverage ratio | 1.73 | 1.96 | 2.13 | 1.83 | 1.64 |
February 29, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,838,620K ÷ $1,637,440K
= 1.73
The financial leverage ratio of Helen of Troy Ltd has fluctuated over the past five years. The ratio decreased from 1.64 in 2020 to 1.73 in 2024, indicating a reduction in the company's reliance on debt to finance its operations. However, this ratio slightly increased to 1.96 in 2023 before reaching a peak of 2.13 in 2022. This upward trend suggests that the company may have taken on more debt during these years to support its growth or investment activities. Overall, a financial leverage ratio above 1 indicates that the company has more debt than equity in its capital structure, highlighting the potential risk associated with higher leverage levels. It is essential for investors and stakeholders to monitor changes in this ratio to assess the company's financial risk and stability.