Kenvue Inc. (KVUE)

Financial leverage ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023
Total assets	US$ in thousands	27,851,000	27,077,000	27,542,000	35,595,000
Total stockholders’ equity	US$ in thousands	11,211,000	10,893,000	11,131,000	20,282,000
Financial leverage ratio		2.48	2.49	2.47	1.76

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $27,851,000K ÷ $11,211,000K
= 2.48

The financial leverage ratio for Kenvue Inc. has shown fluctuations over the four quarters under consideration. The ratio was 1.76 on March 31, 2023, which increased to 2.47 on June 30, 2023, and further to 2.49 on September 30, 2023, before slightly decreasing to 2.48 on December 31, 2023.

A financial leverage ratio of above 1 indicates that the company has more debt than equity in its capital structure. An increasing trend in the financial leverage ratio over time suggests that the company is relying more on debt to finance its operations and growth. This may lead to increased financial risk, as higher levels of debt can result in higher interest payments and potentially constrain the company's ability to meet its financial obligations in the future.

It is important for investors and stakeholders to closely monitor the financial leverage ratio of Kenvue Inc. to assess the company's debt levels and overall financial health. Additionally, management should consider the implications of high leverage and take appropriate measures to maintain a balanced capital structure to ensure sustainable growth and financial stability.