The Ensign Group Inc (ENSG)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,669,360 | 4,177,540 | 3,452,020 | 2,850,620 | 2,545,580 |
| Total stockholders’ equity | US$ in thousands | 1,837,110 | 1,491,860 | 1,247,330 | 1,020,770 | 818,077 |
| Financial leverage ratio | 2.54 | 2.80 | 2.77 | 2.79 | 3.11 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,669,360K ÷ $1,837,110K
= 2.54
The financial leverage ratio of The Ensign Group Inc has exhibited a decreasing trend over the years, declining from 3.11 as of December 31, 2020, to 2.54 as of December 31, 2024. This indicates that the company has been reducing its reliance on debt financing in relation to its equity. A lower ratio typically suggests a lower level of financial risk and a stronger financial position, as the company has less debt in proportion to its equity. Despite fluctuations in the ratio over the years, the overall trend shows a favorable direction towards a more conservative capital structure.
Peer comparison
Dec 31, 2024