EPAM Systems Inc (EPAM)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,750,470 | 4,457,200 | 4,223,330 | 4,374,580 | 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 |
| Total stockholders’ equity | US$ in thousands | 3,629,210 | 3,554,050 | 3,397,380 | 3,475,110 | 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 |
| Financial leverage ratio | 1.31 | 1.25 | 1.24 | 1.26 | 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 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,750,470K ÷ $3,629,210K
= 1.31
EPAM Systems Inc's financial leverage ratio has shown a fluctuating trend over the past few years. The ratio indicates the degree to which the company relies on debt to finance its operations.
From March 31, 2020, to March 31, 2022, the financial leverage ratio remained relatively stable around the range of 1.34 to 1.42. However, starting from March 31, 2022, there was a downward trend observed in the ratio, reaching 1.24 by June 30, 2024.
A decreasing financial leverage ratio generally suggests that the company is relying less on debt and becoming less leveraged, which can be seen as a positive sign as it indicates lower financial risk. It could also imply that EPAM Systems Inc is more capable of meeting its financial obligations from its own equity rather than relying on borrowed funds.
It is important for investors and stakeholders to closely monitor changes in the financial leverage ratio as it can provide insights into the company's financial risk, ability to pay off debt, and overall financial health. However, further analysis of the company's overall financial position and performance is necessary to get a comprehensive understanding of its leverage and capital structure.
Peer comparison
Dec 31, 2024