Magazine Luiza (BSP:MGLU3) Debt-to-Equity

: 1.14 (As of Dec. 2023)

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Magazine Luiza's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was R$3,463 Mil. Magazine Luiza's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was R$7,470 Mil. Magazine Luiza's Total Stockholders Equity for the quarter that ended in Dec. 2023 was R$9,611 Mil. Magazine Luiza's debt to equity for the quarter that ended in Dec. 2023 was 1.14.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

The historical rank and industry rank for Magazine Luiza's Debt-to-Equity or its related term are showing as below:

BSP:MGLU3' s Debt-to-Equity Range Over the Past 10 Years
Min: 0.2 Med: 0.96 Max: 2.97
Current: 1.14

During the past 13 years, the highest Debt-to-Equity Ratio of Magazine Luiza was 2.97. The lowest was 0.20. And the median was 0.96.

BSP:MGLU3's Debt-to-Equity is ranked worse than
71.78% of 1003 companies
in the Retail - Cyclical industry
Industry Median: 0.64 vs BSP:MGLU3: 1.14

Magazine Luiza Debt-to-Equity Historical Data

The historical data trend for Magazine Luiza's Debt-to-Equity can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Magazine Luiza Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-Equity

0.41

0.58

0.91

1.01

1.14

Magazine Luiza Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Debt-to-Equity																1.01	1.06	1.09	1.15	1.14

Competitive Comparison

For the Specialty Retail subindustry, Magazine Luiza's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Magazine Luiza Debt-to-Equity Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Magazine Luiza's Debt-to-Equity distribution charts can be found below:

* The bar in red indicates where Magazine Luiza's Debt-to-Equity falls into.

Magazine Luiza Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

Magazine Luiza's Debt to Equity Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(3462.706	+	7470.304)	/	9610.534
	=	1.14

Magazine Luiza's Debt to Equity Ratio for the quarter that ended in Dec. 2023 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(3462.706	+	7470.304)	/	9610.534
	=	1.14

Magazine Luiza (BSP:MGLU3) Debt-to-Equity Explanation

In the calculation of Debt to Equity, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by Total Stockholders Equity. In some calculations, Total Liabilities is used to for calculation.

Be Aware

Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.

Magazine Luiza Debt-to-Equity Related Terms

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Magazine Luiza (BSP:MGLU3) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Magazine Luiza SA (BSP:MGLU3) » Definitions » Debt-to-Equity

Comparable Companies

Traded in Other Exchanges

MGLUY:USA

Address

Rua Arnulfo de Lima, 2385 - Vila Santa Cruz, Franca, SP, BRA, 14403-471

Website

https://www.magazineluiza.com.br

Magazine Luiza SA is a retailing company in Brazil. Its core products are home appliances, personal electronics, and furniture, which are supplied through physical and virtual stores. Its operations include four segments, Retail segment, Financial operations, Insurance operations and Other services. The company derives maximum revenue from Retail segment.

Magazine Luiza (BSP:MGLU3) Headlines

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