Micron Technology Inc (MU)
Financial leverage ratio
| Aug 29, 2024 | May 30, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | Jun 1, 2023 | Mar 2, 2023 | Dec 1, 2022 | Sep 1, 2022 | Jun 2, 2022 | Mar 3, 2022 | Dec 2, 2021 | Sep 2, 2021 | Jun 3, 2021 | Mar 4, 2021 | Dec 3, 2020 | Sep 3, 2020 | May 28, 2020 | Feb 27, 2020 | Nov 28, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 69,416,000 | 66,255,000 | 65,718,000 | 63,776,000 | 64,254,000 | 65,680,000 | 66,520,000 | 67,874,000 | 66,283,000 | 65,296,000 | 63,696,000 | 61,246,000 | 58,849,000 | 55,943,000 | 54,135,000 | 53,691,000 | 53,678,000 | 52,005,000 | 49,648,000 | 49,649,000 |
| Total stockholders’ equity | US$ in thousands | 45,131,000 | 44,225,000 | 43,870,000 | 42,885,000 | 44,120,000 | 45,405,000 | 47,257,000 | 49,306,000 | 49,907,000 | 49,281,000 | 47,845,000 | 45,908,000 | 43,933,000 | 42,259,000 | 40,663,000 | 39,907,000 | 38,996,000 | 37,820,000 | 37,023,000 | 36,500,000 |
| Financial leverage ratio | 1.54 | 1.50 | 1.50 | 1.49 | 1.46 | 1.45 | 1.41 | 1.38 | 1.33 | 1.32 | 1.33 | 1.33 | 1.34 | 1.32 | 1.33 | 1.35 | 1.38 | 1.38 | 1.34 | 1.36 |
August 29, 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 generally increasing trend over the periods outlined. The ratio has fluctuated between 1.32 to 1.54, indicating an upward trend in the company's reliance on debt to finance its operations and growth. This suggests that the company is assuming more debt relative to its equity, which can increase both the potential returns and risks for investors.
The increasing trend in the financial leverage ratio may imply that Micron Technology has been aggressively utilizing debt to fund its activities, potentially to take advantage of favorable interest rates or to drive expansion. However, it is important to note that a higher leverage ratio can also increase the company's financial risk and vulnerability to economic downturns or adverse events.
Investors and analysts should closely monitor the financial leverage ratio of Micron Technology Inc along with other financial indicators to assess the company's overall financial health and risk exposure. Additionally, management's ability to effectively manage debt levels and generate sufficient returns on investments will be critical factors in determining the company's long-term sustainability and growth prospects.
Peer comparison
Aug 29, 2024