Equifax Inc (EFX)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 12,280,000 | 11,547,900 | 11,040,900 | 9,611,800 | 7,909,000 |
| Total stockholders’ equity | US$ in thousands | 4,534,100 | 3,956,500 | 3,584,400 | 3,168,400 | 2,578,600 |
| Financial leverage ratio | 2.71 | 2.92 | 3.08 | 3.03 | 3.07 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $12,280,000K ÷ $4,534,100K
= 2.71
The financial leverage ratio for Equifax, Inc. has shown a declining trend over the past five years. From 2019 to 2023, the ratio decreased from 3.07 to 2.71, indicating a reduction in the company's reliance on debt to finance its operations and acquisitions. A lower financial leverage ratio suggests that Equifax is financing a smaller portion of its assets with debt, which may imply a stronger financial position and less risk of insolvency.
This decreasing trend could be a positive sign for Equifax as it may indicate a more conservative approach to financing and a potentially improved ability to meet its financial obligations. However, it is essential to consider other financial metrics and factors to gain a comprehensive understanding of the company's overall financial health and performance.