Victoria's Secret & Co (VSCO)
Financial leverage ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | ||
|---|---|---|---|---|
| Total assets | US$ in thousands | 4,600,000 | 4,711,000 | 4,344,000 |
| Total stockholders’ equity | US$ in thousands | 417,000 | 383,000 | 257,000 |
| Financial leverage ratio | 11.03 | 12.30 | 16.90 |
February 3, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,600,000K ÷ $417,000K
= 11.03
The financial leverage ratio of Victoria's Secret & Co has shown a decreasing trend over the past three years, declining from 16.90 in January 2022 to 11.03 in February 2024. This downward trend indicates that the company has been reducing its reliance on debt to finance its operations and investments. A lower financial leverage ratio suggests that Victoria's Secret & Co is using less debt relative to its equity, which may reduce its financial risk and vulnerability to economic downturns. Overall, the decreasing trend in the financial leverage ratio reflects a more conservative approach to capital structure management by Victoria's Secret & Co.
Peer comparison
Feb 3, 2024