Signet Jewelers Ltd (SIG)
Financial leverage ratio
| Feb 1, 2025 | Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,726,600 | 5,685,300 | 5,613,800 | 6,151,200 | 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 |
| Total stockholders’ equity | US$ in thousands | 1,851,800 | 1,799,000 | 1,917,200 | 2,081,800 | 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 |
| Financial leverage ratio | 3.09 | 3.16 | 2.93 | 2.95 | 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 |
February 1, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,726,600K ÷ $1,851,800K
= 3.09
Signet Jewelers Ltd has exhibited a fluctuating trend in its financial leverage ratio over the specified time period. The financial leverage ratio measures the extent to which a company relies on debt financing as opposed to equity. From May 2, 2020, to August 1, 2020, the financial leverage ratio increased from 6.99 to 7.18, indicating a higher proportion of debt in the company's capital structure.
Subsequently, there was a slight decrease in the financial leverage ratio to 7.13 by October 31, 2020. However, a significant decline was observed by January 30, 2021, where the ratio decreased substantially to 5.19, implying a lower reliance on debt financing. This downward trend continued, with the ratio further decreasing to 4.68 by May 1, 2021, and subsequently to 4.06 by July 31, 2021.
The financial leverage ratio saw a slight uptick to 4.16 by October 30, 2021, followed by a gradual increase to 5.00 by April 30, 2022. However, this rise was short-lived as the ratio dipped to 4.51 by July 30, 2022, and then to 4.67 by October 29, 2022.
The ratio declined once again to 4.19 by January 28, 2023, and further decreased to 3.92 by April 29, 2023, indicating a decreasing reliance on debt. This downward trend continued with the ratio dropping to 3.77 by July 29, 2023, and further to 3.86 by October 28, 2023.
A notable decrease in the financial leverage ratio was observed by February 3, 2024, and May 4, 2024, where the ratio fell to 3.14 and 2.95, respectively. This declining trend continued as evidenced by the ratios of 2.93 by August 3, 2024, and 3.16 by November 2, 2024.
By February 1, 2025, the financial leverage ratio stood at 3.09, indicating a moderate reliance on debt financing. Overall, the fluctuating trend suggests that Signet Jewelers Ltd has been actively managing its debt levels and capital structure over the specified period.