Signet Jewelers Ltd (SIG)
Financial leverage ratio
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,813,200 | 6,064,900 | 6,087,400 | 6,205,400 | 6,620,400 | 6,346,000 | 6,164,400 | 6,286,300 | 6,575,100 | 6,387,500 | 6,311,900 | 6,180,800 | 6,178,900 | 6,532,500 | 6,578,100 | 6,877,700 | 6,299,100 | 6,101,600 | 5,965,600 | 6,193,300 |
| Total stockholders’ equity | US$ in thousands | 2,166,500 | 1,572,200 | 1,614,100 | 1,581,500 | 1,578,600 | 1,358,100 | 1,367,900 | 1,256,800 | 1,564,000 | 1,534,600 | 1,555,500 | 1,320,600 | 1,190,300 | 915,900 | 916,400 | 983,800 | 1,222,600 | 1,050,700 | 1,088,200 | 1,161,400 |
| Financial leverage ratio | 3.14 | 3.86 | 3.77 | 3.92 | 4.19 | 4.67 | 4.51 | 5.00 | 4.20 | 4.16 | 4.06 | 4.68 | 5.19 | 7.13 | 7.18 | 6.99 | 5.15 | 5.81 | 5.48 | 5.33 |
February 3, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,813,200K ÷ $2,166,500K
= 3.14
Signet Jewelers Ltd's financial leverage ratio has exhibited fluctuations over the past several quarters. The ratio indicates the company's level of debt relative to its equity. Generally, a higher financial leverage ratio signifies that the company relies more on debt to finance its operations, which can increase financial risk but also potentially enhance returns for shareholders.
Looking at the trend, the financial leverage ratio has been relatively high, ranging from 3.14 to 7.18 over the periods presented. It peaked at 7.18 in October 2020 and has since shown some decline but remained above 3. Lower ratios in the most recent quarters suggest a trend towards slightly reduced reliance on debt compared to equity.
The company's high financial leverage ratios may raise concerns about its ability to service existing debt obligations and manage financial risk effectively. Investors and stakeholders may closely monitor this ratio to assess the company's financial health and sustainability in the long term. Ongoing monitoring of the financial leverage ratio will be important to gauge Signet Jewelers Ltd's debt management strategies and overall financial stability.