Vestis Corporation (VSTS)
Financial leverage ratio
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,932,390 | 3,145,630 | 3,121,660 | 3,161,750 | 3,157,120 | 3,169,800 | 3,176,540 | — | 3,133,010 | — |
| Total stockholders’ equity | US$ in thousands | 903,051 | 901,177 | 900,711 | 904,158 | 877,360 | 913,757 | 904,989 | 2,335,810 | 2,335,810 | — |
| Financial leverage ratio | 3.25 | 3.49 | 3.47 | 3.50 | 3.60 | 3.47 | 3.51 | 0.00 | 1.34 | — |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,932,390K ÷ $903,051K
= 3.25
The financial leverage ratio for Vestis Corporation has shown fluctuation over the past few quarters. The ratio was relatively stable around the 3.50 mark from March 2023 to June 2024, indicating that the company relies on debt financing to a considerable extent compared to equity.
A downward trend is noticeable from December 2022 to September 2022, with the ratio decreasing from 0.00 to 1.34, representing a significant decrease in financial leverage during this period. This sudden drop could be due to various factors such as debt reduction, increased equity financing, or a combination of both.
The spike in the ratio to 3.60 in September 2023 suggests a temporary increase in debt relative to equity, which might have been influenced by specific financing needs or strategic decisions by the company. Overall, the trend in the financial leverage ratio for Vestis Corporation indicates fluctuations in the company's capital structure and financing decisions over the recent quarters.
Peer comparison
Sep 30, 2024