Arcosa Inc (ACA)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,915,500 | 3,577,900 | 3,340,600 | 3,188,100 | 2,646,700 |
| Total stockholders’ equity | US$ in thousands | 2,428,200 | 2,332,000 | 2,184,400 | 1,953,300 | 1,892,200 |
| Financial leverage ratio | 2.02 | 1.53 | 1.53 | 1.63 | 1.40 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,915,500K ÷ $2,428,200K
= 2.02
The financial leverage ratio of Arcosa Inc has shown some variability over the past five years. It increased from 1.40 in 2020 to 1.63 in 2021, indicating a higher level of financial leverage. However, in the subsequent years, the ratio remained relatively stable, at 1.53 for both 2022 and 2023. Notably, there was a significant jump to 2.02 in 2024, suggesting a substantial increase in financial leverage that year.
A financial leverage ratio above 1 indicates that the company relies more on debt financing than on equity financing. Higher ratios can imply higher financial risk, as the company has a greater proportion of debt in its capital structure. It is essential for investors and stakeholders to monitor changes in this ratio over time to assess the company's risk profile and financial stability.
Peer comparison
Dec 31, 2024