Tractor Supply Company (TSCO)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 9,805,480 | 9,188,150 | 8,489,990 | 7,767,470 | 7,049,120 |
| Total stockholders’ equity | US$ in thousands | 2,270,330 | 2,149,760 | 2,042,420 | 2,002,660 | 1,923,840 |
| Financial leverage ratio | 4.32 | 4.27 | 4.16 | 3.88 | 3.66 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,805,480K ÷ $2,270,330K
= 4.32
The financial leverage ratio of Tractor Supply Company has been showing a consistent upward trend over the past five years. The ratio increased from 3.66 in 2020 to 4.32 in 2024, indicating an increase in the company's reliance on debt financing relative to its equity. This suggests that Tractor Supply Company has been taking on more debt over the years to support its operations and growth, which may pose higher financial risks due to the increased financial leverage. It is important for stakeholders to closely monitor the company's debt levels and its ability to meet its financial obligations as indicated by the escalating trend in the financial leverage ratio.
Peer comparison
Dec 31, 2024