Dril-Quip Inc (DRQ)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,028,180 | 969,951 | 1,009,930 | 1,151,170 | 1,206,560 |
| Total stockholders’ equity | US$ in thousands | 881,260 | 872,352 | 897,108 | 1,041,530 | 1,090,700 |
| Financial leverage ratio | 1.17 | 1.11 | 1.13 | 1.11 | 1.11 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,028,180K ÷ $881,260K
= 1.17
The financial leverage ratio of Dril-Quip, Inc. has shown some fluctuations over the past five years. The ratio increased from 1.11 in 2019 to 1.13 in 2021, then slightly decreased to 1.11 in 2022 before rising to 1.17 in 2023. This indicates that the company's reliance on debt to finance its operations and growth has increased in 2023 compared to the previous years. A financial leverage ratio above 1 suggests that the company has more debt than equity in its capital structure. It is important for investors and stakeholders to monitor the trend of this ratio to assess the company's financial risk and solvency.
Peer comparison
Dec 31, 2023