Sally Beauty Holdings Inc (SBH)
Financial leverage ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,792,900 | 2,725,250 | 2,576,870 | 2,847,130 | 2,895,150 |
| Total stockholders’ equity | US$ in thousands | 628,535 | 508,748 | 293,636 | 280,741 | 15,443 |
| Financial leverage ratio | 4.44 | 5.36 | 8.78 | 10.14 | 187.47 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,792,900K ÷ $628,535K
= 4.44
The financial leverage ratio of Sally Beauty Holdings Inc has shown a decreasing trend over the past five years, decreasing from 187.47 in 2020 to 4.44 in 2024. This indicates that the company has reduced its reliance on debt to finance its operations and investments. A lower financial leverage ratio suggests that the company has a lower level of debt relative to its equity, which can be seen as a positive sign of financial health and stability. However, it is important to consider that a very low financial leverage ratio may also indicate underutilization of debt financing and potential missed opportunities for leveraging growth. Overall, the decreasing trend in the financial leverage ratio of Sally Beauty Holdings Inc reflects a strategic shift towards a more balanced capital structure and prudent debt management.
Peer comparison
Sep 30, 2024