Fortrea Holdings Inc. (FTRE)
Financial leverage ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | ||
|---|---|---|---|---|
| Total assets | US$ in thousands | 4,357,200 | 4,316,700 | 4,356,200 |
| Total stockholders’ equity | US$ in thousands | 1,738,800 | 1,694,300 | 1,751,100 |
| Financial leverage ratio | 2.51 | 2.55 | 2.49 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,357,200K ÷ $1,738,800K
= 2.51
The financial leverage ratio of Fortrea Holdings Inc. has shown some fluctuation over the past three quarters. As of December 31, 2023, the financial leverage ratio was calculated to be 2.51, indicating that the company's debt levels were 2.51 times its equity. This ratio decreased slightly from the previous quarter, where it stood at 2.55 on September 30, 2023. However, compared to the ratio of 2.49 recorded on June 30, 2023, the financial leverage ratio has increased.
A financial leverage ratio above 1 suggests that the company is primarily funded by debt rather than equity. In the case of Fortrea Holdings Inc., the ratio indicates a moderate level of financial leverage, indicating that the company has a significant proportion of debt in its capital structure.
The fluctuations in the financial leverage ratio may imply changes in the company's borrowing and financing activities throughout the quarters. It is crucial to continue monitoring this ratio to assess the company's ability to meet its financial obligations and manage its debt levels effectively.
Peer comparison
Dec 31, 2023