Fluor Corporation (FLR)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,973,000 | 6,827,000 | 7,089,000 | 7,309,810 | 7,966,660 |
| Total stockholders’ equity | US$ in thousands | 1,940,000 | 1,786,000 | 1,393,000 | 1,030,250 | 1,487,750 |
| Financial leverage ratio | 3.59 | 3.82 | 5.09 | 7.10 | 5.35 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,973,000K ÷ $1,940,000K
= 3.59
Fluor Corporation's financial leverage ratio has exhibited a decreasing trend from 7.10 in 2020 to 3.59 in 2023. This indicates a reduction in the company's reliance on debt financing over the past few years. A lower financial leverage ratio suggests that the company is using less debt to finance its operations and investments, which can potentially reduce the risk of financial distress. However, it is essential to consider the industry norms and the company's specific financial strategy when evaluating the implications of this trend. The decreasing trend in Fluor Corporation's financial leverage ratio may indicate a more conservative approach to capital structure and financial risk management.
Peer comparison
Dec 31, 2023