Vista Outdoor Inc (VSTO)
Financial leverage ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,402,380 | 2,798,880 | 2,396,200 | 1,764,940 | 1,394,880 |
| Total stockholders’ equity | US$ in thousands | 1,126,300 | 1,131,790 | 1,124,400 | 736,997 | 442,505 |
| Financial leverage ratio | 2.13 | 2.47 | 2.13 | 2.39 | 3.15 |
March 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,402,380K ÷ $1,126,300K
= 2.13
The financial leverage ratio of Vista Outdoor Inc has shown fluctuations over the past five years. The ratio decreased from 3.15 in March 2020 to 2.13 in March 2022, indicating a reduction in the company's reliance on debt to finance its operations. However, there was an increase to 2.47 in March 2023 before decreasing again to 2.13 in March 2024.
A financial leverage ratio above 1 suggests that the company relies more on debt than equity to finance its operations. Vista Outdoor Inc's ratio has generally been above 1, indicating a higher level of debt usage in its capital structure. The downward trend in the ratio from 2020 to 2022 may suggest that the company has been working to reduce its debt levels or increase its equity financing.
Overall, it is essential for investors and stakeholders to monitor Vista Outdoor Inc's financial leverage ratio to assess its ability to meet financial obligations and manage its debt levels effectively.
Peer comparison
Mar 31, 2024