DoubleVerify Holdings Inc (DV)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Total assets | US$ in thousands | 1,243,030 | 1,037,030 | 892,194 |
| Total stockholders’ equity | US$ in thousands | 1,073,940 | 876,859 | 799,066 |
| Financial leverage ratio | 1.16 | 1.18 | 1.12 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,243,030K ÷ $1,073,940K
= 1.16
The financial leverage ratio of DoubleVerify Holdings Inc has shown a slight decrease from 1.18 in 2022 to 1.16 in 2023, indicating a modest improvement in the company's leverage position. A financial leverage ratio above 1 typically suggests that the company relies more on debt financing than equity financing to support its operations and growth.
While a decreasing trend in the financial leverage ratio can be positive as it signifies a potential reduction in the company's reliance on debt, it is essential to consider the absolute level of the ratio in comparison to industry norms and the company's historical performance.
Overall, the financial leverage ratio of DoubleVerify Holdings Inc at 1.16 in 2023 reflects a reasonable level of leverage that investors and creditors should monitor closely to assess the company's ability to manage debt effectively and sustain its financial health.
Peer comparison
Dec 31, 2023