DXP Enterprises Inc (DXPE)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,349,490 | 1,177,440 | 1,037,280 | 906,192 | 851,861 |
| Total stockholders’ equity | US$ in thousands | 422,788 | 380,879 | 365,392 | 358,639 | 347,068 |
| Financial leverage ratio | 3.19 | 3.09 | 2.84 | 2.53 | 2.45 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,349,490K ÷ $422,788K
= 3.19
Based on the provided data, DXP Enterprises Inc's financial leverage ratio has been gradually increasing over the years. The ratio stood at 2.45 as of December 31, 2020, and has been steadily rising to 3.19 as of December 31, 2024. This indicates that the company's reliance on debt to finance its operations and growth has been increasing over the years. A higher financial leverage ratio typically implies a higher level of financial risk, as the company has a higher proportion of debt in its capital structure. It would be important for stakeholders and investors to closely monitor DXP Enterprises Inc's debt levels and financial health to ensure that the company can manage its debt obligations effectively.
Peer comparison
Dec 31, 2024