Movado Group Inc (MOV)
Financial leverage ratio
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 769,082 | 787,705 | 761,160 | 719,257 | 847,308 |
| Total stockholders’ equity | US$ in thousands | 516,798 | 507,606 | 472,808 | 425,264 | 526,537 |
| Financial leverage ratio | 1.49 | 1.55 | 1.61 | 1.69 | 1.61 |
January 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $769,082K ÷ $516,798K
= 1.49
Movado Group Inc's financial leverage ratio has exhibited a downward trend over the past five years, declining from 1.61 in January 2020 to 1.49 in January 2024. This indicates a reduction in the company's reliance on debt to finance its operations and investments. A lower financial leverage ratio suggests a lower level of financial risk due to a decreased dependence on borrowed funds, which could be seen as a positive sign for the company's financial stability and flexibility. However, it's also important to note that the ratio is still above 1, indicating that the company has some level of debt in its capital structure, which should be carefully managed to avoid potential financial distress.