Prestige Brand Holdings Inc (PBH)
Financial leverage ratio
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,402,220 | 3,318,420 | 3,353,730 | 3,670,680 | 3,429,270 |
| Total stockholders’ equity | US$ in thousands | 1,834,900 | 1,655,080 | 1,447,080 | 1,577,610 | 1,358,300 |
| Financial leverage ratio | 1.85 | 2.00 | 2.32 | 2.33 | 2.52 |
March 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,402,220K ÷ $1,834,900K
= 1.85
The financial leverage ratio of Prestige Brand Holdings Inc has exhibited a generally decreasing trend over the past five years, declining from 2.52 as of March 31, 2021, to 1.85 as of March 31, 2025. This gradual reduction in the ratio indicates a diminishing reliance on debt financing to support the company's operations and investments.
A financial leverage ratio of 2.52 as of March 31, 2021, suggests that the company's total assets were financed by debt to a ratio of 2.52 to 1. However, as this ratio decreased to 1.85 by March 31, 2025, it implies that the proportion of debt in the company's capital structure has decreased over time, possibly due to deleveraging efforts or a shift towards alternative forms of financing.
Overall, the declining trend in Prestige Brand Holdings Inc's financial leverage ratio indicates a potentially improved financial risk profile and may reflect management's strategy to reduce leverage and enhance the company's financial stability. Additionally, a lower financial leverage ratio may signal a lower risk of default and bankruptcy for the company, as it suggests a healthier balance between debt and equity in its capital structure.
Peer comparison
Mar 31, 2025