AMN Healthcare Services Inc (AMN)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	2,924,390	2,888,350	3,131,910	2,353,510	1,931,650
Total stockholders’ equity	US$ in thousands	831,256	1,043,630	1,162,030	819,677	736,742
Financial leverage ratio		3.52	2.77	2.70	2.87	2.62

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,924,390K ÷ $831,256K
= 3.52

The financial leverage ratio of AMN Healthcare Services Inc. has shown an increasing trend over the past five years, moving from 2.62 in 2019 to 3.52 in 2023. This indicates that the company has been relying more on debt to finance its operations and growth.

During the period, there was a noticeable peak in 2023, signifying potentially aggressive leveraging strategies or significant debt accumulation for expansion or other purposes. Investors and creditors may view this as a risk factor, as higher leverage can increase the company's financial risk and interest burden.

While a higher financial leverage ratio can magnify returns for shareholders in a favorable market environment, it also amplifies losses in challenging times. It is crucial for stakeholders to monitor the company's ability to manage its debt levels effectively, especially considering the potential impact on the company's creditworthiness and overall financial stability.