Movado Group Inc (MOV)

Financial leverage ratio

		Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Total assets	US$ in thousands	769,082	763,397	749,697	741,496	787,705	775,680	766,136	739,984	761,160	741,017	710,898	694,706	719,257	701,778	679,689	697,913	847,308	867,055	840,631	828,661
Total stockholders’ equity	US$ in thousands	516,798	500,439	500,784	491,971	507,606	478,021	470,836	459,650	472,808	454,349	434,567	426,777	425,264	389,345	373,671	369,799	526,537	520,681	500,304	489,641
Financial leverage ratio		1.49	1.53	1.50	1.51	1.55	1.62	1.63	1.61	1.61	1.63	1.64	1.63	1.69	1.80	1.82	1.89	1.61	1.67	1.68	1.69

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 some fluctuation over the past few quarters, ranging from 1.49 to 1.89. The financial leverage ratio measures the proportion of a company's debt to its equity, indicating the level of financial risk and leverage used by the company. The trend shows a general increase in the ratio over the period, reaching its peak at 1.89 in April 2020 before decreasing slightly to 1.61 in January 2024.

A higher financial leverage ratio suggests that a company is using more debt to finance its operations, which can amplify both returns and risks. Movado Group Inc's ratio above 1 indicates that the company has more debt than equity in its capital structure. Investors and analysts typically monitor changes in the financial leverage ratio to assess the riskiness of the company's capital structure and its ability to meet debt obligations. Overall, the company's financial leverage ratio trend reflects varying levels of debt and equity utilization over the specified period.