Everus Construction Group Inc (ECG)

Financial leverage ratio

		Sep 30, 2024	Jun 30, 2024	Dec 31, 2023
Total assets	US$ in thousands	1,279,290	1,278,700	1,110,580
Total stockholders’ equity	US$ in thousands	453,303	400,323	448,850
Financial leverage ratio		2.82	3.19	2.47

September 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,279,290K ÷ $453,303K
= 2.82

The financial leverage ratio of Everus Construction Group Inc has shown some fluctuation over the three quarters presented. In September 2024, the financial leverage ratio stands at 2.82, indicating that the company relies on debt financing to operate. This ratio has decreased from the previous quarter's value of 3.19 in June 2024 but is higher than the ratio reported at the end of December 2023, which was 2.47.

A financial leverage ratio above 1 suggests that the company is using more debt to finance its operations than equity. While a higher ratio can amplify returns on equity, it also increases financial risk due to the higher interest burden and potential difficulties in debt repayment. It is important for Everus Construction Group Inc to closely monitor its financial leverage ratio and ensure it maintains a balance between debt and equity to sustain its financial health and growth in the long term.