Exponent Inc (EXPO)
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 | 777,270 | 744,065 | 709,177 | 629,405 | 662,321 | 602,462 | 604,284 | 566,427 | 586,662 | 559,003 | 566,704 | 617,548 | 683,739 | 638,305 | 618,871 | 577,022 | 580,096 | 534,666 | 513,187 | 483,663 |
| Total stockholders’ equity | US$ in thousands | 421,068 | 410,274 | 393,213 | 374,311 | 356,085 | 353,635 | 357,079 | 341,856 | 320,752 | 319,800 | 337,494 | 386,564 | 417,065 | 404,989 | 387,767 | 377,608 | 361,498 | 343,197 | 332,567 | 323,497 |
| Financial leverage ratio | 1.85 | 1.81 | 1.80 | 1.68 | 1.86 | 1.70 | 1.69 | 1.66 | 1.83 | 1.75 | 1.68 | 1.60 | 1.64 | 1.58 | 1.60 | 1.53 | 1.60 | 1.56 | 1.54 | 1.50 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $777,270K ÷ $421,068K
= 1.85
The financial leverage ratio of Exponent Inc has shown a gradual increase over the past few years, indicating an increase in the company's reliance on debt to finance its operations. The ratio has fluctuated within a range of 1.50 to 1.85 from March 31, 2020, to December 31, 2024.
A financial leverage ratio above 1 suggests that the company has more debt than equity in its capital structure. The upward trend in the ratio indicates a potential increase in financial risk as higher leverage can amplify both returns and losses. It is important for investors and creditors to closely monitor changes in the financial leverage ratio to assess the company's ability to meet its debt obligations and manage its financial health effectively.
Overall, the increasing trend in Exponent Inc's financial leverage ratio may warrant a closer examination of the company's debt management strategies and risk exposure.
Peer comparison
Dec 31, 2024