AMC Networks Inc (AMCX)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	4,969,790	5,633,840	5,748,950	5,246,340	5,596,690
Total stockholders’ equity	US$ in thousands	1,048,050	806,988	851,088	616,805	665,781
Financial leverage ratio		4.74	6.98	6.75	8.51	8.41

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,969,790K ÷ $1,048,050K
= 4.74

The financial leverage ratio measures the extent to which a company relies on debt financing rather than equity. AMC Networks Inc's financial leverage ratio has fluctuated over the past five years, ranging from 4.74 in 2023 to 8.51 in 2020. A higher financial leverage ratio indicates a greater reliance on debt to finance operations.

In 2023, AMC Networks Inc improved its financial leverage position with a ratio of 4.74, showcasing a lower dependency on debt compared to previous years. This suggests that the company may have reduced its debt levels or increased equity financing.

In contrast, the financial leverage ratio was highest in 2020 at 8.51, signaling a significant reliance on debt during that period. The subsequent decrease in the ratio in the following years may indicate efforts to decrease debt levels, improve financial stability, or optimize the capital structure.

Overall, fluctuations in AMC Networks Inc's financial leverage ratio highlight changes in the company's capital structure and financing decisions over the years, influencing its risk profile and financial flexibility. It is important for stakeholders to monitor these trends to assess the company's financial health and sustainability.