Lancaster Colony Corporation (LANC)
Financial leverage ratio
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,206,930 | 1,172,010 | 1,148,920 | 1,130,300 | 1,112,990 | 1,157,760 | 1,137,170 | 1,131,230 | 1,090,370 | 1,103,620 | 1,120,200 | 1,115,140 | 1,101,280 | 1,068,350 | 1,054,310 | 1,024,370 | 993,353 | 993,052 | 983,703 | 962,341 |
| Total stockholders’ equity | US$ in thousands | 925,772 | 912,852 | 908,326 | 878,768 | 862,267 | 873,184 | 879,550 | 862,071 | 844,687 | 838,622 | 865,009 | 850,055 | 843,147 | 831,113 | 826,360 | 801,106 | 783,300 | 773,284 | 772,758 | 749,665 |
| Financial leverage ratio | 1.30 | 1.28 | 1.26 | 1.29 | 1.29 | 1.33 | 1.29 | 1.31 | 1.29 | 1.32 | 1.30 | 1.31 | 1.31 | 1.29 | 1.28 | 1.28 | 1.27 | 1.28 | 1.27 | 1.28 |
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 been relatively stable over the past few quarters, ranging between 1.26 and 1.33. The ratio has generally stayed above 1, indicating that the company relies more on debt financing than equity to support its operations and growth. A higher financial leverage ratio signifies a higher proportion of debt in the company's capital structure, which can potentially amplify returns but also increases financial risk.
Lancaster Colony Corporation's financial leverage ratio peaked at 1.33 in March 2023 before gradually declining to 1.26 in December 2023. Since then, the ratio has shown some fluctuations but has mostly remained within a narrow range. This suggests that the company has been maintaining a balanced mix of debt and equity in its capital structure.
It is important for investors and analysts to closely monitor changes in the financial leverage ratio over time, as significant fluctuations may indicate shifts in the company's risk profile and financial stability. Overall, Lancaster Colony Corporation's consistent but slightly fluctuating financial leverage ratio suggests a moderate level of financial risk and a stable capital structure.
Peer comparison
Jun 30, 2024