Monro Muffler Brake Inc (MNRO)
Financial leverage ratio
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | — | 1,692,810 | 1,776,880 | 1,871,410 | 1,811,810 |
| Total stockholders’ equity | US$ in thousands | 620,761 | 656,775 | 694,922 | 782,906 | 749,684 |
| Financial leverage ratio | 0.00 | 2.58 | 2.56 | 2.39 | 2.42 |
March 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $—K ÷ $620,761K
= 0.00
The financial leverage ratio, also known as the debt-to-equity ratio, provides insight into Monro Muffler Brake Inc's capital structure and its reliance on debt financing. The trend of the financial leverage ratio from March 31, 2021, to March 31, 2025, shows fluctuations in the company's leverage position.
- As of March 31, 2021, the financial leverage ratio stood at 2.42, indicating that for every dollar of equity, the company had $2.42 in debt.
- Subsequently, by March 31, 2022, the ratio decreased slightly to 2.39, suggesting a slight decrease in the company's reliance on debt compared to the previous year.
- However, in the following years, the financial leverage ratio saw an upward trend, reaching 2.56 by March 31, 2023, and further increasing to 2.58 by March 31, 2024. These increases indicate that Monro Muffler Brake Inc's debt levels were rising relative to its equity, potentially signaling an increased risk due to higher leverage.
- Surprisingly, by March 31, 2025, the financial leverage ratio dropped to 0.00. A financial leverage ratio of 0.00 typically indicates that the company had no debt and relied entirely on equity financing. This significant drop raises questions about the accuracy of the data or a significant shift in Monro Muffler Brake Inc's capital structure, potentially due to debt repayment or other financial events.
In conclusion, the fluctuation in Monro Muffler Brake Inc's financial leverage ratio over the specified period suggests varying levels of debt utilization and equity financing, which can impact the company's risk profile and financial stability. Further analysis and context would be required to understand the reasons behind these changes in the financial leverage ratio.
Peer comparison
Mar 31, 2025