Micron Technology Inc (MU)
Financial leverage ratio
| Aug 31, 2024 | Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Aug 31, 2022 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 69,416,000 | 69,416,000 | 64,254,000 | 66,283,000 | 66,283,000 |
| Total stockholders’ equity | US$ in thousands | 45,131,000 | 45,131,000 | 44,120,000 | 49,907,000 | 49,907,000 |
| Financial leverage ratio | 1.54 | 1.54 | 1.46 | 1.33 | 1.33 |
August 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $69,416,000K ÷ $45,131,000K
= 1.54
The financial leverage ratio of Micron Technology Inc has shown a relatively stable trend over the past few years, fluctuating between 1.33 and 1.54. This ratio indicates the company's level of financial leverage and dependency on debt financing.
The increase in the financial leverage ratio from 1.33 in August 2022 to 1.54 in August 2024 suggests that the company may have taken on more debt relative to its equity over this period. This could indicate a strategic decision to leverage more debt for potential growth opportunities, acquisitions, or capital investments.
It is important for investors and analysts to closely monitor changes in the financial leverage ratio as higher levels of leverage can increase financial risk and impact the company's ability to meet its financial obligations, especially in challenging economic conditions. Further analysis of Micron Technology Inc's overall financial health and debt management strategies would be necessary to fully assess the implications of these leverage ratio changes.
Peer comparison
Aug 31, 2024