Expeditors International of Washington Inc (EXPD)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	4,523,810	5,590,430	7,609,930	4,927,500	3,691,880
Total stockholders’ equity	US$ in thousands	2,390,350	3,110,020	3,494,430	2,659,640	2,195,030
Financial leverage ratio		1.89	1.80	2.18	1.85	1.68

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,523,810K ÷ $2,390,350K
= 1.89

The financial leverage ratio of Expeditors International Of Washington, Inc. has fluctuated over the past five years. The ratio indicates the extent to which the company relies on debt financing to support its operations and growth.

In 2023, the financial leverage ratio increased to 1.89 from 1.80 in 2022, suggesting a slight increase in the proportion of debt in the company's capital structure. This could be a signal that the company has taken on additional debt to fund its activities.

The ratio peaked in 2021 at 2.18, indicating a higher level of leverage compared to the other years. This could imply increased financial risk for the company as higher leverage magnifies both profits and losses.

In 2020, the financial leverage ratio decreased slightly to 1.85, indicating a reduction in the company's reliance on debt financing compared to the previous year.

The lowest ratio was observed in 2019 at 1.68, which suggests a relatively lower level of debt usage in the company's capital structure.

Overall, the fluctuation in the financial leverage ratio of Expeditors International Of Washington, Inc. over the past five years indicates varying levels of debt utilization and financial risk within the company's operations and capital structure.