Williams-Sonoma Inc (WSM)
Financial leverage ratio
| Jan 31, 2025 | Jan 31, 2024 | Jan 28, 2024 | Jan 31, 2023 | Jan 29, 2023 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,301,610 | 5,273,550 | 5,273,550 | 4,663,020 | 4,663,020 |
| Total stockholders’ equity | US$ in thousands | 2,142,420 | 2,127,860 | 2,127,860 | 1,701,050 | 1,701,050 |
| Financial leverage ratio | 2.47 | 2.48 | 2.48 | 2.74 | 2.74 |
January 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,301,610K ÷ $2,142,420K
= 2.47
The financial leverage ratio of Williams-Sonoma Inc has shown a consistent trend over the past few years. As of January 29, 2023, and January 31, 2023, the ratio stood at 2.74, indicating that the company had $2.74 in debt for every dollar of equity.
However, there was a slight decrease in the financial leverage ratio to 2.48 as of January 28, 2024, and January 31, 2024. This reduction suggests that Williams-Sonoma Inc may have taken steps to reduce its debt levels relative to its equity during this period.
As of January 31, 2025, the financial leverage ratio further declined to 2.47, indicating a continued improvement in the company's debt-to-equity position. Overall, the decreasing trend in the financial leverage ratio suggests that Williams-Sonoma Inc has been effectively managing its debt levels relative to its equity, which can be a positive sign of financial stability and risk management.