Urban Outfitters Inc (URBN)

Financial leverage ratio

Jan 31, 2025 Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021
Total assets US$ in thousands 4,519,480 4,111,210 3,682,910 3,791,350 3,546,340
Total stockholders’ equity US$ in thousands 2,471,500 2,112,540 1,792,680 1,745,740 1,477,360
Financial leverage ratio 1.83 1.95 2.05 2.17 2.40

January 31, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,519,480K ÷ $2,471,500K
= 1.83

Urban Outfitters Inc's financial leverage ratio has shown a declining trend over the past five years, decreasing from 2.40 as of January 31, 2021, to 1.83 as of January 31, 2025. This indicates a reduction in the company's reliance on debt to finance its operations and suggests a strengthening of its financial structure. A decreasing financial leverage ratio generally signifies improved solvency and lower financial risk for the company, as it shows a decreasing level of debt relative to equity. Urban Outfitters Inc's declining financial leverage ratio is a positive indicator for investors and stakeholders, demonstrating a healthier balance sheet and potentially greater stability in the company's financial position.