Clean Harbors Inc (CLH)
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 | 7,377,280 | 7,306,010 | 7,136,950 | 6,939,820 | 6,382,870 | 6,248,180 | 6,101,340 | 6,084,010 | 6,129,710 | 6,072,630 | 5,924,660 | 5,726,260 | 5,653,700 | 4,354,300 | 4,275,880 | 4,152,540 | 4,131,520 | 4,106,190 | 4,077,630 | 4,132,020 |
| Total stockholders’ equity | US$ in thousands | 2,573,530 | 2,528,310 | 2,441,720 | 2,311,340 | 2,247,510 | 2,185,790 | 2,109,890 | 1,980,040 | 1,922,320 | 1,837,580 | 1,716,950 | 1,593,240 | 1,513,890 | 1,463,560 | 1,409,590 | 1,348,450 | 1,341,550 | 1,304,720 | 1,253,970 | 1,205,800 |
| Financial leverage ratio | 2.87 | 2.89 | 2.92 | 3.00 | 2.84 | 2.86 | 2.89 | 3.07 | 3.19 | 3.30 | 3.45 | 3.59 | 3.73 | 2.98 | 3.03 | 3.08 | 3.08 | 3.15 | 3.25 | 3.43 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,377,280K ÷ $2,573,530K
= 2.87
Clean Harbors Inc's financial leverage ratio has shown a gradual decreasing trend from 3.43 as of March 31, 2020, to 2.87 as of December 31, 2024. This indicates that the company has been reducing its reliance on debt to finance its operations and investments over the period. However, it is important to note that there was a temporary increase in the financial leverage ratio to 3.73 as of December 31, 2021, before declining again in subsequent periods.
Overall, the decreasing trend in the financial leverage ratio suggests that Clean Harbors Inc has been managing its debt levels effectively and improving its financial stability by reducing its debt burden relative to its equity. This can be viewed positively by investors and creditors as it indicates a lower level of financial risk associated with the company's capital structure.