Brinks Company (BCO)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,601,800 | 6,366,000 | 5,566,700 | 5,135,600 | 3,763,800 |
| Total stockholders’ equity | US$ in thousands | 397,400 | 447,100 | 123,000 | 128,800 | 191,800 |
| Financial leverage ratio | 16.61 | 14.24 | 45.26 | 39.87 | 19.62 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,601,800K ÷ $397,400K
= 16.61
The financial leverage ratio of Brink`s Co. has fluctuated significantly over the past five years, ranging from a low of 14.24 in 2022 to a high of 45.26 in 2021. This ratio indicates the extent to which the company is relying on debt to finance its operations and growth. A high financial leverage ratio suggests a higher level of debt relative to equity, which can increase financial risk. On the other hand, a lower ratio indicates a more conservative capital structure with less reliance on debt.
The decreasing trend in the financial leverage ratio from 2021 to 2022 may reflect a strategic shift towards a more conservative approach to financing, possibly reducing the company`s financial risk. However, the sudden increase in the ratio in 2021 raises concerns about the company`s ability to manage its debt levels effectively. Overall, further analysis of Brink`s Co.`s debt management practices and financial health is recommended to better understand the implications of its financial leverage ratio fluctuations.
Peer comparison
Dec 31, 2023