Vista Outdoor Inc (VSTO)

Financial leverage ratio

Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019
Total assets US$ in thousands 2,402,380 2,453,600 2,746,800 2,809,720 2,798,880 3,329,700 3,397,920 2,457,070 2,396,200 2,361,870 2,017,960 1,851,800 1,764,940 1,528,740 1,431,320 1,388,450 1,394,880 1,548,930 1,629,200 1,861,300
Total stockholders’ equity US$ in thousands 1,126,300 1,082,900 1,225,740 1,180,000 1,131,790 1,420,650 1,349,450 1,249,310 1,124,400 1,030,320 935,013 800,679 736,997 658,728 574,637 489,505 442,505 604,950 588,501 594,949
Financial leverage ratio 2.13 2.27 2.24 2.38 2.47 2.34 2.52 1.97 2.13 2.29 2.16 2.31 2.39 2.32 2.49 2.84 3.15 2.56 2.77 3.13

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 some fluctuations over the past few quarters, ranging from 1.97 to 3.15. This ratio measures the company's use of debt to finance its operations and is calculated by dividing total assets by total equity. A higher ratio indicates higher financial risk as the company relies more on debt funding.

Vista Outdoor's financial leverage ratio peaked at 3.15 in March 2020 before gradually decreasing and fluctuating around the 2.00-2.50 range in the subsequent quarters. This may suggest that the company reduced its reliance on debt to finance its activities, which could be a positive sign for investors concerned about the company's financial stability.

It is important to note that while a high financial leverage ratio can magnify returns on equity when times are good, it also increases the risk of insolvency during economic downturns. Therefore, investors and analysts should monitor this ratio closely along with other financial metrics to assess Vista Outdoor's overall financial health and risk profile.


Peer comparison

Mar 31, 2024