Ollie's Bargain Outlet Hldg (OLLI)

Financial leverage ratio

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Total assets	US$ in thousands	2,294,590	2,044,100	1,972,170	2,005,860	1,596,250
Total stockholders’ equity	US$ in thousands	1,508,230	1,362,070	1,287,710	1,334,880	1,058,880
Financial leverage ratio		1.52	1.50	1.53	1.50	1.51

February 3, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,294,590K ÷ $1,508,230K
= 1.52

The financial leverage ratio of Ollie's Bargain Outlet Hldg has been relatively stable over the past five years, ranging from 1.50 to 1.53. This ratio indicates that the company relies more on debt financing compared to equity to fund its operations and growth. A ratio above 1 suggests that the company has more debt relative to equity in its capital structure.

The consistency in the financial leverage ratio implies that Ollie's Bargain Outlet Hldg has maintained a relatively stable level of debt relative to its equity over the years. This could be a strategic decision to take advantage of debt financing at favorable terms or to leverage opportunities for expansion while managing financial risk.

However, it is important to note that a higher financial leverage ratio also implies higher financial risk, as the company has a greater obligation to meet its debt payments. Investors and creditors may monitor this ratio closely to assess the company's ability to handle its debt obligations and overall financial health.