Victoria's Secret & Co (VSCO)
Debt-to-assets ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | ||
|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,120,000 | 1,271,000 | 978,000 |
| Total assets | US$ in thousands | 4,600,000 | 4,711,000 | 4,344,000 |
| Debt-to-assets ratio | 0.24 | 0.27 | 0.23 |
February 3, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,120,000K ÷ $4,600,000K
= 0.24
The debt-to-assets ratio of Victoria's Secret & Co has shown fluctuations over the past three fiscal years. As of February 3, 2024, the ratio stands at 0.24, indicating that the company's total debt represents 24% of its total assets. This suggests that Victoria's Secret & Co relies more on equity financing rather than debt financing to support its operations and investments.
Comparing this to the ratio of 0.27 recorded on January 28, 2023, it appears that the company has reduced its reliance on debt financing in the most recent year. However, in the fiscal year ending January 29, 2022, the ratio was slightly lower at 0.23, indicating a higher proportion of debt relative to assets compared to the current year.
Overall, the decreasing trend in the debt-to-assets ratio implies that Victoria's Secret & Co has been successful in managing its debt levels in relation to its total assets over the assessed period. This may indicate a prudent financial strategy aimed at maintaining a healthy balance sheet and minimizing financial risk.
Peer comparison
Feb 3, 2024