Forward Air Corporation (FWRD)

Financial leverage ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total assets	US$ in thousands	2,802,640	2,979,530	1,208,080	1,117,820	1,047,770
Total stockholders’ equity	US$ in thousands	201,728	764,261	707,244	593,654	547,329
Financial leverage ratio		13.89	3.90	1.71	1.88	1.91

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,802,640K ÷ $201,728K
= 13.89

The financial leverage ratio for Forward Air Corporation experienced fluctuations over the five-year period from 2020 to 2024. Starting at 1.91 in 2020, the ratio slightly decreased to 1.88 in 2021 before showing a more significant decline to 1.71 in 2022. However, there was a notable increase in 2023 where the ratio surged to 3.90, indicating a higher level of financial leverage. This increase was followed by a substantial jump to 13.89 in 2024, reflecting a significant increase in the company's reliance on debt to finance its operations. It is essential to further analyze the reasons behind this dramatic increase in leverage to understand the potential implications for the company's financial health and risk profile.