Equifax Inc (EFX)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 11,759,400 | 12,280,000 | 11,547,900 | 11,040,900 | 9,611,800 |
| Total stockholders’ equity | US$ in thousands | 4,796,900 | 4,534,100 | 3,956,500 | 3,584,400 | 3,168,400 |
| Financial leverage ratio | 2.45 | 2.71 | 2.92 | 3.08 | 3.03 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $11,759,400K ÷ $4,796,900K
= 2.45
The financial leverage ratio of Equifax Inc has shown a slight increase from 3.03 at December 31, 2020, to 3.08 at December 31, 2021. However, there was a subsequent decrease to 2.92 at December 31, 2022, followed by a more notable decline to 2.71 at December 31, 2023, and a further decrease to 2.45 at December 31, 2024. This downward trend indicates that Equifax has been decreasing its reliance on debt financing in relation to equity over the years, which may suggest a strengthening financial position and reduced risk of financial distress. Overall, the decreasing trend in the financial leverage ratio highlights Equifax's efforts to manage its capital structure effectively.