Patterson Companies Inc (PDCO)
Financial leverage ratio
| Apr 27, 2024 | Apr 29, 2023 | Apr 30, 2022 | Apr 24, 2021 | Apr 25, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,896,730 | 2,879,150 | 2,741,630 | 2,751,510 | 2,715,350 |
| Total stockholders’ equity | US$ in thousands | 1,001,140 | 1,117,540 | 1,041,680 | 963,216 | 834,117 |
| Financial leverage ratio | 2.89 | 2.58 | 2.63 | 2.86 | 3.26 |
April 27, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,896,730K ÷ $1,001,140K
= 2.89
The financial leverage ratio for Patterson Companies Inc has fluctuated over the last five years, ranging from a low of 2.58 in 2023 to a high of 3.26 in 2020. The ratio measures the degree to which the company is using debt to finance its operations compared to equity. A higher financial leverage ratio indicates that a larger portion of the company's assets are financed through debt.
In 2024, the financial leverage ratio increased to 2.89 from the previous year, suggesting a slight increase in the company's reliance on debt financing. Despite this uptick, the ratio remains below the peak level observed in 2020, indicating that the company has reduced its debt-to-equity mix in recent years.
Overall, the variations in Patterson Companies Inc's financial leverage ratio over the period reflect changes in the company's capital structure and financing strategy. Investors and analysts may interpret these fluctuations as indicators of the company's risk profile and financial stability.
Peer comparison
Apr 27, 2024