Brinks Company (BCO)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,623,100 | 6,670,600 | 6,561,600 | 6,679,300 | 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 |
| Total stockholders’ equity | US$ in thousands | 312,500 | 277,100 | 320,500 | 396,400 | 397,400 | 462,800 | 664,200 | 605,000 | 570,200 | 202,700 | 240,500 | 240,000 | 252,600 | 249,000 | 174,000 | 225,100 | 202,500 | 90,000 | 111,300 | 82,000 |
| Financial leverage ratio | 21.19 | 24.07 | 20.47 | 16.85 | 16.61 | 13.54 | 9.65 | 10.34 | 11.16 | 29.27 | 24.21 | 23.96 | 22.04 | 22.30 | 32.06 | 23.06 | 25.36 | 54.48 | 42.87 | 46.35 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,623,100K ÷ $312,500K
= 21.19
The financial leverage ratio of Brinks Company has displayed some fluctuations over the past few years, reflecting changes in the company's capital structure. The ratio decreased from 46.35% as of March 31, 2020, to 11.16% by December 31, 2022, indicating a significant reduction in the company's reliance on debt financing during this period. Subsequently, the ratio gradually increased to 24.07% as of September 30, 2024.
A lower financial leverage ratio suggests that Brinks Company has been using less debt relative to equity in its capital structure, which can be viewed positively as it signifies lower financial risk and greater financial stability. On the other hand, the increase in the ratio towards the end of the period may imply that the company has started utilizing more debt financing, potentially to fund growth opportunities or investments.
Overall, the trend in Brinks Company's financial leverage ratio indicates a dynamic approach to its capital structure management, balancing the benefits and risks associated with debt financing to support its strategic objectives and financial health.
Peer comparison
Dec 31, 2024