Brinks Company (BCO)

Financial leverage ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	6,601,800	6,264,800	6,411,400	6,253,100	6,366,000	5,933,400	5,823,100	5,750,400	5,566,700	5,552,900	5,578,400	5,190,500	5,135,600	4,903,100	4,771,200	3,800,900	3,763,800	3,702,600	3,732,400	3,602,000
Total stockholders’ equity	US$ in thousands	397,400	462,800	541,300	478,800	447,100	202,700	240,500	240,000	123,000	121,400	174,000	99,800	128,800	90,000	111,300	66,300	191,800	169,200	194,200	165,300
Financial leverage ratio		16.61	13.54	11.84	13.06	14.24	29.27	24.21	23.96	45.26	45.74	32.06	52.01	39.87	54.48	42.87	57.33	19.62	21.88	19.22	21.79

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 exhibited considerable variability over the past eight quarters. The ratio ranged from a high of 29.27 in Q3 2022 to a low of 11.84 in Q2 2023, indicating fluctuations in the company's debt utilization during this period.

A financial leverage ratio above 1 suggests that the company relies more on debt financing than equity financing, which can amplify returns but also increase financial risk. Conversely, a ratio below 1 indicates a lower reliance on debt and a potentially less risky capital structure.

Brink's Co. experienced a significant decrease in its financial leverage ratio from Q3 2022 to Q2 2023, signaling a reduction in debt relative to equity in the company's capital structure. This could be a strategic shift towards deleveraging or a decrease in borrowing for expansion or other purposes.

Overall, the trend in Brink's Co.'s financial leverage ratio suggests fluctuations in the company's capital structure and debt management practices, highlighting the importance of monitoring leverage levels to assess financial risk and sustainability.