Urban Outfitters Inc (URBN)
Financial leverage ratio
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,111,210 | 3,682,910 | 3,791,350 | 3,546,340 | 3,315,630 |
| Total stockholders’ equity | US$ in thousands | 2,112,540 | 1,792,680 | 1,745,740 | 1,477,360 | 1,455,360 |
| Financial leverage ratio | 1.95 | 2.05 | 2.17 | 2.40 | 2.28 |
January 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,111,210K ÷ $2,112,540K
= 1.95
The financial leverage ratio of Urban Outfitters Inc has shown a decreasing trend from 2.40 in January 2021 to 1.95 in January 2024. This indicates that the company's reliance on debt has been decreasing over the years. A lower financial leverage ratio suggests that the company is financing a smaller portion of its assets through debt, which can be seen as a positive sign as it reduces the risk of financial distress in times of economic uncertainty. It also means that the company may have stronger equity, which can potentially lead to better financial stability and flexibility in managing its capital structure.
Peer comparison
Jan 31, 2024