Signet Jewelers Ltd (SIG)
Financial leverage ratio
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,726,600 | 6,813,200 | 6,620,400 | 6,575,100 | 6,178,900 |
| Total stockholders’ equity | US$ in thousands | 1,851,800 | 2,166,500 | 1,578,600 | 1,564,000 | 1,190,300 |
| Financial leverage ratio | 3.09 | 3.14 | 4.19 | 4.20 | 5.19 |
February 1, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,726,600K ÷ $1,851,800K
= 3.09
The financial leverage ratio of Signet Jewelers Ltd has shown a downward trend over the years, indicating a decreasing reliance on debt to finance its operations. From 5.19 in January 2021, the ratio decreased to 3.09 by February 2025. This signifies a positive shift towards a more conservative capital structure, potentially reducing financial risk and enhancing financial stability. Lowering the financial leverage ratio suggests improved financial health and decreased dependency on borrowed funds, which can be favorable for long-term sustainability and growth prospects.