Fluor Corporation (FLR)
Financial leverage ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,973,000 | 7,163,000 | 6,756,000 | 6,630,000 | 6,827,000 | 6,870,000 | 6,525,000 | 6,492,000 | 7,089,000 | 7,258,080 | 7,856,480 | 7,020,920 | 7,309,810 | 7,271,650 | 7,240,770 | 7,292,470 | 7,966,660 | 7,888,980 | 8,979,050 | 9,022,190 |
| Total stockholders’ equity | US$ in thousands | 1,940,000 | 1,883,000 | 1,797,000 | 1,719,000 | 1,786,000 | 1,650,000 | 1,514,000 | 1,469,000 | 1,393,000 | 1,597,530 | 1,515,550 | 983,654 | 1,030,250 | 1,128,950 | 1,091,720 | 1,091,640 | 1,487,750 | 1,559,300 | 2,375,490 | 2,813,100 |
| Financial leverage ratio | 3.59 | 3.80 | 3.76 | 3.86 | 3.82 | 4.16 | 4.31 | 4.42 | 5.09 | 4.54 | 5.18 | 7.14 | 7.10 | 6.44 | 6.63 | 6.68 | 5.35 | 5.06 | 3.78 | 3.21 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,973,000K ÷ $1,940,000K
= 3.59
The financial leverage ratio of Fluor Corporation has shown some fluctuations over the past few quarters. In Q1 of 2022, the ratio was at its highest point at 4.42, indicating a higher level of financial leverage. However, since then, there has been a downward trend in the ratio, with the latest reported ratio in Q4 of 2023 standing at 3.59.
A financial leverage ratio above 1 typically indicates that a company relies more on debt to finance its operations than on equity. In the case of Fluor Corporation, the ratios consistently above 3 suggest a significant reliance on debt in its capital structure.
The decreasing trend in the financial leverage ratio could indicate that the company is gradually reducing its reliance on debt financing or improving its financial position. However, it is important to note that a high level of financial leverage can increase the company's financial risk, especially in times of economic uncertainty or adverse operating conditions.
Overall, monitoring the financial leverage ratio of Fluor Corporation is crucial to understanding its capital structure and assessing its risk profile in the long term.
Peer comparison
Dec 31, 2023