Concentra Group Holdings Parent, Inc. (CON)
Financial leverage ratio
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Jun 30, 2023 | Mar 31, 2023 | ||
|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,481,040 | 2,363,340 | 2,366,160 | 2,333,560 | — | — |
| Total stockholders’ equity | US$ in thousands | 277,780 | 1,246,780 | 1,195,760 | 0 | — | 996,115 |
| Financial leverage ratio | 8.93 | 1.90 | 1.98 | — | — | 0.00 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,481,040K ÷ $277,780K
= 8.93
The financial leverage ratio of Concentra Group Holdings Parent, Inc. has shown significant variability over the period from March 31, 2023, to September 30, 2024. The ratio was 0.00 as of March 31, 2023, indicating the absence of long-term debt within the capital structure. Subsequently, the ratio increased to 1.98 as of March 31, 2024, suggesting that the company began to utilize debt financing as part of its capital structure.
The ratio further increased to 1.90 as of June 30, 2024, indicating a stable level of financial leverage. However, a sharp increase was observed as of September 30, 2024, with the ratio reaching 8.93. Such a substantial rise in the financial leverage ratio may signify a significant increase in the company's long-term debt relative to its equity.
It is crucial to investigate the reasons behind this spike in the financial leverage ratio, as excessively high leverage levels can pose risks to the company's financial health, potentially leading to increased interest expenses, reduced profitability, and heightened vulnerability to economic downturns. The management of Concentra Group Holdings Parent, Inc. should closely monitor and manage its leverage levels to maintain a balanced capital structure that supports sustainable growth and financial stability.
Peer comparison
Sep 30, 2024