CorVel Corp (CRVL)
Financial leverage ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 454,679 | 444,995 | 434,117 | 417,573 | 393,923 | 407,687 | 399,886 | 415,677 | 415,246 | 423,708 | 424,901 | 422,483 | 424,760 | 457,865 | 441,580 | 425,009 | 416,260 | 422,080 | 426,769 | 427,864 |
| Total stockholders’ equity | US$ in thousands | 247,647 | 233,530 | 222,569 | 206,980 | 202,176 | 194,805 | 197,833 | 205,628 | 212,395 | 214,927 | 223,795 | 229,539 | 220,402 | 209,873 | 202,400 | 198,092 | 189,711 | 193,365 | 200,816 | 203,817 |
| Financial leverage ratio | 1.84 | 1.91 | 1.95 | 2.02 | 1.95 | 2.09 | 2.02 | 2.02 | 1.96 | 1.97 | 1.90 | 1.84 | 1.93 | 2.18 | 2.18 | 2.15 | 2.19 | 2.18 | 2.13 | 2.10 |
March 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $454,679K ÷ $247,647K
= 1.84
The financial leverage ratio of CorVel Corp has been fluctuating over the past few quarters, ranging from 1.84 to 2.19. This ratio measures the extent to which the company relies on debt to finance its operations and investments. A higher financial leverage ratio indicates a higher level of debt relative to equity in the company's capital structure.
The trend in CorVel Corp's financial leverage ratio appears to have increased from the earlier quarters of 2019 to its peak in the second half of 2022. Subsequently, there was a slight decrease in the ratio towards the end of 2023. This indicates that the company may have been gradually decreasing its reliance on debt financing or increasing its equity position during this period.
Overall, a financial leverage ratio of around 2 suggests that CorVel Corp is financing about two-thirds of its assets with debt, contributing to increased financial risk. Investors and creditors typically monitor changes in the financial leverage ratio to assess the company's ability to meet its debt obligations and its overall financial health.