Boise Cascad Llc (BCC)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,458,650 | 3,240,510 | 2,572,640 | 1,965,720 | 1,693,350 |
| Total stockholders’ equity | US$ in thousands | 2,195,660 | 2,057,980 | 1,352,620 | 850,799 | 701,330 |
| Financial leverage ratio | 1.58 | 1.57 | 1.90 | 2.31 | 2.41 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,458,650K ÷ $2,195,660K
= 1.58
The financial leverage ratio of Boise Cascade Co has exhibited a downward trend from 2.41 in 2019 to 1.58 in 2023. A lower financial leverage ratio indicates that the company is relying less on debt to finance its operations and growth, which can be seen as a positive sign of financial stability and lower financial risk.
The decrease in the financial leverage ratio over the past five years suggests that Boise Cascade Co has been reducing its reliance on debt financing and improving its financial position. This may be a strategic move by the company to strengthen its balance sheet, enhance its creditworthiness, and potentially lower its interest expenses.
Overall, a declining financial leverage ratio for Boise Cascade Co signals a healthier capital structure and a more conservative approach to financing its operations, which could boost investor confidence and contribute to long-term sustainable growth.
Peer comparison
Dec 31, 2023