Arcosa Inc (ACA)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,577,900 | 3,340,600 | 3,188,100 | 2,646,700 | 2,302,500 |
| Total stockholders’ equity | US$ in thousands | 2,332,000 | 2,184,400 | 1,953,300 | 1,892,200 | 1,790,400 |
| Financial leverage ratio | 1.53 | 1.53 | 1.63 | 1.40 | 1.29 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,577,900K ÷ $2,332,000K
= 1.53
The financial leverage ratio of Arcosa Inc has shown varying levels over the past five years. The ratio has been relatively stable in 2022 and 2023, standing at 1.53 for both years. However, in 2021, there was a slight increase in the financial leverage ratio to 1.63, indicating a higher level of financial leverage. This increase could suggest that the company took on more debt compared to its equity that year.
In contrast, in 2020 and 2019, the financial leverage ratio was lower at 1.40 and 1.29, respectively. These lower ratios indicate that the company had a lower proportion of debt in its capital structure compared to equity during those years.
Overall, the trend in the financial leverage ratio of Arcosa Inc shows some fluctuations, with the company experiencing both higher and lower levels of financial leverage in recent years. This may imply varying degrees of risk and potential impacts on the company's financial performance and stability. A higher financial leverage ratio can magnify the company's returns, but can also increase the risk of financial distress, while a lower ratio signifies a more conservative capital structure.
Peer comparison
Dec 31, 2023