Api Group Corp (APG)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 8,152,000 | 7,590,000 | 8,091,000 | 5,159,000 | 4,065,000 |
| Total stockholders’ equity | US$ in thousands | 2,953,000 | 2,868,000 | 2,127,000 | 2,323,000 | 1,558,000 |
| Financial leverage ratio | 2.76 | 2.65 | 3.80 | 2.22 | 2.61 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $8,152,000K ÷ $2,953,000K
= 2.76
The financial leverage ratio of Api Group Corp has exhibited notable fluctuations over the analyzed period from December 31, 2020, to December 31, 2024. At the end of 2020, the ratio stood at 2.61, indicating a moderate level of leverage whereby the company utilized debt relative to its equity. By the end of 2021, the ratio decreased to 2.22, reflecting a reduction in leverage, potentially due to deleveraging strategies or increased equity positions.
However, this downward trend was temporary, as the ratio spiked significantly to 3.80 at the close of 2022, signaling increased reliance on debt financing and heightened financial leverage. The elevated leverage level in 2022 might have been driven by strategic investments, acquisitions, or other financing activities that amplified debt levels relative to equity.
In subsequent years, the ratio decreased again to 2.65 by the end of 2023, suggesting a partial deleveraging effort or increased equity capital. Moving into 2024, the ratio experienced a slight increase to 2.76, indicating a modest uptick in leverage but remaining within a range that signifies a balanced use of debt relative to equity.
Overall, the company's financial leverage ratios demonstrate periods of both increase and decrease, with the highest leverage observed at the end of 2022. These fluctuations imply dynamic capital structure management, balancing leverage for growth opportunities against risks associated with increased debt levels.
Peer comparison
Dec 31, 2024