Kenvue Inc. (KVUE)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 25,601,000 | 26,925,000 | 26,443,000 | 27,283,000 | 27,851,000 |
| Total stockholders’ equity | US$ in thousands | 9,668,000 | 10,644,000 | 10,178,000 | 10,621,000 | 11,211,000 |
| Financial leverage ratio | 2.65 | 2.53 | 2.60 | 2.57 | 2.48 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $25,601,000K ÷ $9,668,000K
= 2.65
The financial leverage ratio of Kenvue Inc. has shown a steady increase over the five quarters analyzed, reaching 2.65 as of December 31, 2024. This indicates that the company relies more on debt financing relative to equity to fund its operations. A higher financial leverage ratio typically implies higher financial risk, as the company may have higher interest payments and debt obligations to fulfill. It could also suggest that the company is leveraging its operations to magnify returns, which can be advantageous during periods of growth but risky during economic downturns. Overall, Kenvue Inc.'s increasing financial leverage ratio warrants further investigation into its debt management strategies and overall financial health.
Peer comparison
Dec 31, 2024