Tractor Supply Company (TSCO)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 9,188,150 | 8,489,990 | 7,767,470 | 7,049,120 | 5,289,270 |
| Total stockholders’ equity | US$ in thousands | 2,149,760 | 2,042,420 | 2,002,660 | 1,923,840 | 1,567,120 |
| Financial leverage ratio | 4.27 | 4.16 | 3.88 | 3.66 | 3.38 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,188,150K ÷ $2,149,760K
= 4.27
Tractor Supply Company's financial leverage ratio has been steadily increasing over the past five years, reaching 4.27 in 2023 from 3.38 in 2019. This indicates that the company's reliance on debt to finance its operations and growth has been intensifying. The rising trend in the financial leverage ratio suggests that Tractor Supply has been taking on more debt relative to its equity, which can magnify returns but also increase financial risk. It is important for investors and stakeholders to closely monitor this trend to assess the company's ability to manage its debt levels and maintain financial stability.
Peer comparison
Dec 31, 2023