FTI Consulting Inc (FCN)
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 | 3,596,830 | 3,517,180 | 3,357,640 | 3,324,530 | 3,325,880 | 3,318,830 | 3,246,310 | 3,100,980 | 3,241,410 | 3,082,090 | 3,003,170 | 2,949,290 | 3,100,910 | 3,006,920 | 2,938,430 | 2,778,200 | 2,777,360 | 2,794,400 | 2,704,910 | 2,637,180 |
| Total stockholders’ equity | US$ in thousands | 2,258,290 | 2,252,200 | 2,149,380 | 2,054,360 | 1,981,420 | 1,864,500 | 1,795,150 | 1,720,890 | 1,681,720 | 1,644,580 | 1,630,620 | 1,622,020 | 1,583,320 | 1,544,300 | 1,489,210 | 1,416,350 | 1,400,180 | 1,474,500 | 1,479,100 | 1,468,680 |
| Financial leverage ratio | 1.59 | 1.56 | 1.56 | 1.62 | 1.68 | 1.78 | 1.81 | 1.80 | 1.93 | 1.87 | 1.84 | 1.82 | 1.96 | 1.95 | 1.97 | 1.96 | 1.98 | 1.90 | 1.83 | 1.80 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,596,830K ÷ $2,258,290K
= 1.59
The financial leverage ratio of FTI Consulting Inc has shown a fluctuating trend over the past five years, ranging from a low of 1.56 to a high of 1.98. This ratio measures the extent to which the company relies on debt to finance its operations and growth. A higher leverage ratio indicates a greater reliance on debt, which can potentially increase financial risk but also amplify returns on equity.
FTI Consulting Inc's financial leverage ratio increased steadily from March 2020 to December 2020, reaching its peak at 1.98. This indicates a period of increasing debt utilization to fund operations or investments during this time frame. Subsequently, the ratio fluctuated around the 1.90 level throughout 2021 and early 2022. However, from March 2023 onwards, there was a noticeable decline in the financial leverage ratio, dropping to 1.56 by June 2024.
The decreasing trend in the financial leverage ratio from 2023 to 2024 suggests a reduction in the company's reliance on debt financing relative to its equity. This may indicate improved financial stability and lower financial risk as the company potentially focuses on deleveraging or generating internal funds to support its activities. Overall, monitoring the financial leverage ratio can provide insights into the company's capital structure and risk management strategies.
Peer comparison
Dec 31, 2024