Thor Industries Inc (THO)
Financial leverage ratio
| Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 7,020,820 | 7,218,200 | 7,225,830 | 7,172,470 | 7,260,830 | 7,553,960 | 7,311,960 | 7,281,260 | 7,408,130 | 7,735,500 | 7,665,140 | 7,768,770 | 6,654,090 | 6,713,970 | 6,369,550 | 5,860,920 | 5,771,460 | 5,612,290 | 5,628,480 | 5,607,540 |
| Total stockholders’ equity | US$ in thousands | 4,067,430 | 4,003,230 | 3,936,420 | 3,915,460 | 3,976,020 | 3,891,900 | 3,780,780 | 3,642,360 | 3,592,860 | 3,433,890 | 3,225,660 | 3,102,840 | 2,921,840 | 2,732,700 | 2,570,240 | 2,392,740 | 2,319,780 | 2,086,670 | 2,112,840 | 2,113,530 |
| Financial leverage ratio | 1.73 | 1.80 | 1.84 | 1.83 | 1.83 | 1.94 | 1.93 | 2.00 | 2.06 | 2.25 | 2.38 | 2.50 | 2.28 | 2.46 | 2.48 | 2.45 | 2.49 | 2.69 | 2.66 | 2.65 |
July 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,020,820K ÷ $4,067,430K
= 1.73
The financial leverage ratio of Thor Industries Inc has shown fluctuations over the past few years, ranging from 1.73 to 2.69. The ratio measures the extent to which the company relies on debt to finance its operations and investments. A higher ratio indicates higher financial leverage and a greater reliance on debt financing.
Analyzing the trend, the financial leverage ratio has been increasing over the past few years, reaching its peak at 2.69 in October 2020 before slightly decreasing in the most recent period to 1.73 in July 2024. This could suggest that the company has been gradually reducing its reliance on debt financing, which may indicate a more conservative approach to capital structure and financial risk management.
However, it is important to note that a high financial leverage ratio also implies higher financial risk, as the company may face challenges in meeting its debt obligations, especially in times of economic downturns or interest rate increases. It is crucial for stakeholders to monitor the trend of the financial leverage ratio and assess the company's overall financial health and risk profile.
Peer comparison
Jul 31, 2024