CoreCivic Inc (CXW)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,931,890 | 3,105,400 | 3,244,770 | 3,498,940 | 3,709,320 |
| Total stockholders’ equity | US$ in thousands | 1,493,350 | 1,477,570 | 1,432,410 | 1,372,470 | 1,390,170 |
| Financial leverage ratio | 1.96 | 2.10 | 2.27 | 2.55 | 2.67 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,931,890K ÷ $1,493,350K
= 1.96
CoreCivic Inc's financial leverage ratio has been consistently declining over the years, indicating a decreasing reliance on debt to finance its operations and investments. The ratio peaked at 2.67 on December 31, 2020, and has since steadily decreased to 1.96 by December 31, 2024. This trend suggests that the company may be becoming more financially stable and less exposed to risks associated with high levels of debt. Lower financial leverage ratios are generally viewed favorably by investors and creditors as they indicate a stronger financial position and ability to meet financial obligations. Overall, the declining trend in CoreCivic Inc's financial leverage ratio is a positive signal of the company's improving financial health and risk management.
Peer comparison
Dec 31, 2024