Monro Muffler Brake Inc (MNRO)
Financial leverage ratio
| Mar 31, 2024 | Dec 23, 2023 | Sep 23, 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 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,692,810 | 1,733,100 | 1,726,770 | 1,754,020 | 1,776,880 | 1,799,180 | 1,789,070 | 1,815,730 | 1,871,410 | 1,889,190 | 1,853,360 | 1,891,770 | 1,811,810 | 1,830,680 | 1,843,480 | 1,898,840 | 2,049,460 | 1,712,210 | 1,620,050 | 1,578,450 |
| Total stockholders’ equity | US$ in thousands | 656,775 | 659,718 | 700,143 | 695,168 | 694,922 | 701,183 | 721,770 | 769,676 | 782,906 | 781,511 | 772,918 | 758,591 | 749,684 | 736,043 | 736,367 | 730,720 | 734,440 | 746,592 | 733,576 | 718,588 |
| Financial leverage ratio | 2.58 | 2.63 | 2.47 | 2.52 | 2.56 | 2.57 | 2.48 | 2.36 | 2.39 | 2.42 | 2.40 | 2.49 | 2.42 | 2.49 | 2.50 | 2.60 | 2.79 | 2.29 | 2.21 | 2.20 |
March 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,692,810K ÷ $656,775K
= 2.58
The financial leverage ratio measures the company's use of debt to finance its operations and growth. Monro Muffler Brake Inc's financial leverage ratio has shown some fluctuation over the past few quarters, ranging from 2.20 to 2.79. The ratio indicates that, on average, the company has maintained a moderate level of financial leverage, with an average ratio of approximately 2.48 during the period under review.
A financial leverage ratio of around 2.48 implies that for every dollar of equity, the company has around $2.48 of debt. This suggests that Monro Muffler Brake Inc relies moderately on debt financing to support its operations and investments. It is important to note that a higher financial leverage ratio indicates a higher reliance on debt, which can amplify both returns and risks for the company.
Overall, the trend in Monro Muffler Brake Inc's financial leverage ratio suggests a relatively stable capital structure, with the company maintaining a balance between debt and equity to support its business activities. Further analysis of the company's debt repayment capacity and interest coverage ratios would provide a more comprehensive assessment of its financial health and risk profile.
Peer comparison
Mar 31, 2024