DXP Enterprises Inc (DXPE)
Financial leverage ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,177,440 | 1,045,100 | 1,034,430 | 1,053,160 | 1,037,280 | 996,075 | 984,024 | 902,315 | 894,227 | 912,957 | 901,580 | 911,517 | 868,131 | 736,718 | 783,130 | 791,691 | 788,220 | 791,554 | 786,607 | 775,207 |
| Total stockholders’ equity | US$ in thousands | 380,879 | 363,576 | 369,465 | 374,284 | 365,392 | 386,497 | 375,586 | 360,187 | 346,674 | 361,132 | 353,712 | 361,826 | 360,338 | 322,641 | 356,823 | 351,136 | 353,786 | 341,157 | 329,017 | 315,279 |
| Financial leverage ratio | 3.09 | 2.87 | 2.80 | 2.81 | 2.84 | 2.58 | 2.62 | 2.51 | 2.58 | 2.53 | 2.55 | 2.52 | 2.41 | 2.28 | 2.19 | 2.25 | 2.23 | 2.32 | 2.39 | 2.46 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,177,440K ÷ $380,879K
= 3.09
The financial leverage ratio of DXP Enterprises Inc has been fluctuating over the past five years, ranging from a low of 2.19 in June 2020 to a high of 3.09 in December 2023. This ratio indicates the company's level of debt relative to its equity, with a higher ratio suggesting higher financial leverage.
Overall, there seems to be a trend of increasing financial leverage ratio from 2020 to 2023, indicating a possible increase in the company's reliance on debt to finance its operations and investments. This could be a strategic decision to take advantage of low interest rates or to fuel growth opportunities.
It is important to monitor this trend closely to assess the company's ability to service its debt obligations and manage financial risks effectively. A high financial leverage ratio may signal increased financial risk and could impact the company's creditworthiness and overall financial stability.
Peer comparison
Dec 31, 2023