Thor Industries Inc (THO)
Financial leverage ratio
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 7,020,820 | 7,260,830 | 7,408,130 | 6,654,090 | 5,771,460 |
| Total stockholders’ equity | US$ in thousands | 4,067,430 | 3,976,020 | 3,592,860 | 2,921,840 | 2,319,780 |
| Financial leverage ratio | 1.73 | 1.83 | 2.06 | 2.28 | 2.49 |
July 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,020,820K ÷ $4,067,430K
= 1.73
The financial leverage ratio for Thor Industries Inc has shown a declining trend over the past five years, decreasing from 2.49 in July 2020 to 1.73 in July 2024. This indicates that the company has been relying less on debt financing and more on equity financing to support its operations and growth.
A lower financial leverage ratio suggests that the company is less reliant on debt to fund its activities, which can be viewed positively as it reduces the financial risk associated with high levels of debt. It also indicates a stronger financial position, as the company has a higher proportion of equity in its capital structure.
Overall, the decreasing trend in Thor Industries Inc's financial leverage ratio reflects a prudent financial strategy of reducing debt levels and strengthening its balance sheet over the years.
Peer comparison
Jul 31, 2024