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