Urban Outfitters Inc (URBN)

Financial leverage ratio

Jan 31, 2025 Oct 31, 2024 Jul 31, 2024 Apr 30, 2024 Jan 31, 2024 Oct 31, 2023 Jul 31, 2023 Apr 30, 2023 Jan 31, 2023 Oct 31, 2022 Jul 31, 2022 Apr 30, 2022 Jan 31, 2022 Oct 31, 2021 Jul 31, 2021 Apr 30, 2021 Jan 31, 2021 Oct 31, 2020 Jul 31, 2020 Apr 30, 2020
Total assets US$ in thousands 4,519,480 4,485,780 4,258,820 4,188,700 4,111,210 4,109,660 3,969,940 3,792,670 3,682,910 3,720,120 3,653,430 3,642,310 3,791,350 3,890,610 3,742,890 3,579,610 3,546,340 3,530,680 3,425,280 3,356,200
Total stockholders’ equity US$ in thousands 2,471,500 2,352,920 2,241,430 2,162,330 2,112,540 2,046,560 1,967,390 1,850,680 1,792,680 1,738,390 1,707,190 1,695,920 1,745,740 1,746,730 1,669,420 1,534,510 1,477,360 1,431,320 1,350,590 1,298,110
Financial leverage ratio 1.83 1.91 1.90 1.94 1.95 2.01 2.02 2.05 2.05 2.14 2.14 2.15 2.17 2.23 2.24 2.33 2.40 2.47 2.54 2.59

January 31, 2025 calculation

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

The financial leverage ratio of Urban Outfitters Inc has been decreasing gradually over the past few years, indicating an improvement in the company's financial health and risk profile. The ratio started at 2.59 as of April 30, 2020, and has steadily decreased to 1.83 as of January 31, 2025.

A decreasing trend in the financial leverage ratio suggests that the company is relying less on debt to finance its operations and investments. A lower financial leverage ratio typically indicates a stronger balance sheet and less financial risk, as the company has a higher proportion of equity compared to debt in its capital structure.

Urban Outfitters Inc's declining financial leverage ratio may be a result of various factors, such as effective management of capital structure, increased profitability, or a reduction in debt levels. Investors and stakeholders often view a decreasing financial leverage ratio positively, as it indicates a company's ability to withstand economic downturns and financial challenges. However, it is essential to monitor the trend over time and consider other financial metrics to gain a comprehensive understanding of the company's financial performance and stability.