Lancaster Colony Corporation (LANC)
Financial leverage ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,206,930 | 1,112,990 | 1,090,370 | 1,101,280 | 993,353 |
| Total stockholders’ equity | US$ in thousands | 925,772 | 862,267 | 844,687 | 843,147 | 783,300 |
| Financial leverage ratio | 1.30 | 1.29 | 1.29 | 1.31 | 1.27 |
June 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,206,930K ÷ $925,772K
= 1.30
The financial leverage ratio of Lancaster Colony Corporation has shown slight fluctuations over the past five years, ranging from 1.27 to 1.31, with the latest ratio reported at 1.30 as of June 30, 2024. This ratio indicates that the company has maintained a relatively stable level of financial leverage during this period. A ratio above 1 signifies that the company relies more on debt financing than equity, which can amplify returns but also increase financial risk. In the case of Lancaster Colony, the modest variations in the ratio suggest a prudent approach to managing its capital structure. It is important for stakeholders to monitor this ratio over time to assess the impact of debt levels on the company's financial health and performance.
Peer comparison
Jun 30, 2024