Shoe Carnival Inc (SCVL)
Financial leverage ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,042,020 | 989,781 | 812,264 | 642,747 | 628,374 |
| Total stockholders’ equity | US$ in thousands | 583,389 | 525,568 | 452,533 | 310,176 | 297,363 |
| Financial leverage ratio | 1.79 | 1.88 | 1.79 | 2.07 | 2.11 |
February 3, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,042,020K ÷ $583,389K
= 1.79
The financial leverage ratio for Shoe Carnival Inc has shown fluctuations over the past five years. The ratio decreased from 2.11 in February 2020 to 1.79 in January 2022 before increasing to 1.88 in January 2023. Subsequently, the ratio decreased again to 1.79 in January 2024, indicating a lower level of financial leverage compared to the previous year.
A financial leverage ratio of less than 1 suggests that the company has more equity relative to debt, which can indicate a lower financial risk. Conversely, a ratio above 1 indicates higher financial risk due to a higher proportion of debt in the capital structure.
Overall, the downward trend in Shoe Carnival Inc's financial leverage ratio from 2.11 in February 2020 to 1.79 in January 2024 suggests a decreasing reliance on debt financing over the years, potentially leading to a more stable financial position and reduced financial risk for the company.
Peer comparison
Feb 3, 2024