CoreCivic Inc (CXW)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,105,400 | 3,244,770 | 3,498,940 | 3,709,320 | 3,791,630 |
| Total stockholders’ equity | US$ in thousands | 1,477,570 | 1,432,410 | 1,372,470 | 1,390,170 | 1,376,750 |
| Financial leverage ratio | 2.10 | 2.27 | 2.55 | 2.67 | 2.75 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,105,400K ÷ $1,477,570K
= 2.10
The financial leverage ratio of CoreCivic Inc has exhibited a decreasing trend over the past five years, declining from 2.75 in 2019 to 2.10 in 2023. This indicates that the company has been relying less on debt financing relative to equity over this period. A lower financial leverage ratio suggests a lower level of financial risk as the company is using less debt to finance its operations. However, it's important to note that a very low financial leverage ratio may also indicate underutilization of debt and potential missed opportunities for leveraging financial leverage for growth and profitability. Overall, the decreasing trend in the financial leverage ratio of CoreCivic Inc reflects a more conservative approach to capital structure management in recent years.
Peer comparison
Dec 31, 2023