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.