EPAM Systems Inc (EPAM)

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	4,352,360	4,162,270	4,093,700	4,071,340	4,009,150	3,735,600	3,563,960	3,507,570	3,523,230	3,242,230	2,961,620	2,780,540	2,721,330	2,555,420	2,389,130	2,311,880	2,244,210	2,040,160	1,931,450	1,831,440
Total stockholders’ equity	US$ in thousands	3,470,890	3,299,440	3,262,760	3,128,960	3,001,530	2,757,170	2,622,350	2,552,100	2,487,120	2,339,120	2,212,670	2,063,940	1,983,020	1,860,230	1,753,090	1,647,480	1,596,140	1,492,120	1,422,250	1,338,220
Financial leverage ratio		1.25	1.26	1.25	1.30	1.34	1.35	1.36	1.37	1.42	1.39	1.34	1.35	1.37	1.37	1.36	1.40	1.41	1.37	1.36	1.37

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,352,360K ÷ $3,470,890K
= 1.25

The financial leverage ratio for EPAM Systems Inc has been relatively stable over the past eight quarters, ranging from 1.25 to 1.37. The trend indicates that the company has maintained a moderate level of financial leverage during this period. A financial leverage ratio above 1 suggests that the company relies more on debt to finance its operations than on equity.

The decreasing trend in the financial leverage ratio from Q4 2022 to Q1 2023 indicates a decline in the company's reliance on debt financing, which could be seen as a positive sign for investors concerned about financial risk. However, the ratio slightly increased in Q2 and Q3 of 2023, indicating a potential reversal in this trend.

Overall, while the financial leverage ratio for EPAM Systems Inc has shown some fluctuations, the company has managed to maintain a relatively stable level of financial leverage, which reflects a balanced approach to capital structure management. Investors should continue to monitor any changes in the financial leverage ratio to assess the company's risk profile and financial health.