The Ensign Group Inc (ENSG)
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 | 4,177,540 | 4,081,980 | 3,952,360 | 3,862,240 | 3,452,020 | 3,265,270 | 3,124,670 | 3,044,560 | 2,850,620 | 2,813,380 | 2,648,550 | 2,512,500 | 2,545,580 | 2,464,990 | 2,488,160 | 2,388,010 | 2,361,910 | 2,359,550 | 2,321,520 | 2,218,360 |
| Total stockholders’ equity | US$ in thousands | 1,491,860 | 1,459,750 | 1,387,780 | 1,318,170 | 1,247,330 | 1,180,060 | 1,120,170 | 1,071,590 | 1,020,770 | 979,200 | 928,593 | 876,047 | 818,077 | 764,755 | 715,997 | 675,236 | 654,197 | 686,259 | 662,052 | 632,705 |
| Financial leverage ratio | 2.80 | 2.80 | 2.85 | 2.93 | 2.77 | 2.77 | 2.79 | 2.84 | 2.79 | 2.87 | 2.85 | 2.87 | 3.11 | 3.22 | 3.48 | 3.54 | 3.61 | 3.44 | 3.51 | 3.51 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,177,540K ÷ $1,491,860K
= 2.80
The financial leverage ratio of Ensign Group Inc has been relatively stable over the past eight quarters, ranging from 2.77 to 2.93. This ratio indicates that the company relies on debt financing to a significant extent in relation to its equity. A ratio above 1 suggests that the company has more debt than equity in its capital structure.
Ensign Group Inc's financial leverage ratio has shown a slight upward trend in the recent quarters, increasing from 2.77 in Q4 2022 to 2.93 in Q1 2023, before declining slightly to 2.80 in Q4 2023. This indicates that the company's debt levels relative to equity have fluctuated but generally remained within a narrow range.
A financial leverage ratio of around 2.80 to 2.85 signifies that Ensign Group Inc may be exposed to higher financial risk due to its substantial reliance on debt for funding its operations and investments. Investors and creditors may view the company as having a moderate to high level of leverage, which could potentially impact its ability to weather economic downturns or meet its financial obligations in the long term.
It is important for Ensign Group Inc to carefully manage its debt levels and monitor its financial leverage ratio to ensure that it maintains a healthy balance between debt and equity financing, striking a balance between growth opportunities and financial stability.
Peer comparison
Dec 31, 2023