Deluxe Corporation (DLX)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,831,040 | 3,080,620 | 3,076,500 | 3,074,400 | 1,874,900 |
| Total stockholders’ equity | US$ in thousands | 620,918 | 604,094 | 604,200 | 574,600 | 540,800 |
| Financial leverage ratio | 4.56 | 5.10 | 5.09 | 5.35 | 3.47 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,831,040K ÷ $620,918K
= 4.56
Based on the data provided, Deluxe Corporation's financial leverage ratio has shown some fluctuations over the years. The financial leverage ratio increased from 3.47 in 2020 to 5.35 in 2021, indicating that the company relied more on debt to finance its operations in 2021. Subsequently, there was a slight decrease in the financial leverage ratio to 5.09 in 2022, followed by a minimal change to 5.10 in 2023. Finally, the ratio slightly decreased to 4.56 in 2024, suggesting a potential reduction in the company's reliance on debt relative to its equity. Overall, the trend in the financial leverage ratio indicates that Deluxe Corporation's capital structure has experienced fluctuations in the utilization of debt financing over the years, which may have implications for the company's financial risk and stability.