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

Company name
Symbol
Financial leverage ratio
Tractor Supply Company
TSCO
4.27
Fastenal Company
FAST
1.33
Sherwin-Williams Co
SHW
6.18