Urban Outfitters Inc (URBN)

Financial leverage ratio

		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	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Total assets	US$ in thousands	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	3,315,630	3,320,590	3,138,040	3,251,820
Total stockholders’ equity	US$ in thousands	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	1,455,360	1,429,850	1,361,400	1,447,970
Financial leverage ratio		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	2.28	2.32	2.31	2.25

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 general trend of increase over the past several quarters, indicating a rise in the company's level of debt relative to its equity. The ratio has moved from 1.95 in January 2020 to 2.59 in April 2020, with some fluctuations in between.

A financial leverage ratio above 1 indicates that the company is relying more on debt to finance its operations than equity. Urban Outfitters' ratio consistently above 2 suggests a significant reliance on debt in its capital structure.

This level of financial leverage can amplify returns when the company is performing well, but it also increases the risk if the company faces financial difficulties. Investors and stakeholders should closely monitor the trend in Urban Outfitters' financial leverage ratio to assess the company's risk profile and financial health.