ExlService Holdings Inc (EXLS)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,441,970 | 1,346,120 | 1,282,900 | 1,247,860 | 1,183,090 |
| Total stockholders’ equity | US$ in thousands | 889,437 | 758,179 | 693,156 | 719,172 | 670,001 |
| Financial leverage ratio | 1.62 | 1.78 | 1.85 | 1.74 | 1.77 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,441,970K ÷ $889,437K
= 1.62
The financial leverage ratio of ExlService Holdings Inc has shown fluctuations over the past five years. The ratio decreased from 1.77 in 2019 to 1.74 in 2020, indicating a modest improvement in the company's leverage position. However, the ratio increased in the subsequent years, reaching 1.85 in 2021 and then further to 1.78 in 2022, before decreasing to 1.62 in 2023.
A financial leverage ratio above 1 indicates that the company relies more on debt financing than equity, which can amplify returns but also increase financial risk. The decreasing trend in the ratio from 2021 to 2023 may suggest that the company has been reducing its reliance on debt financing or strengthening its equity position during this period.
Overall, while the recent decrease in the financial leverage ratio in 2023 is a positive sign, further analysis of the company's debt levels, profitability, and overall financial health would be necessary to provide a more comprehensive assessment of ExlService Holdings Inc's leverage position.
Peer comparison
Dec 31, 2023