Forward Air Corporation (FWRD)

Financial leverage ratio

		Mar 31, 2025	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
Total assets	US$ in thousands	2,802,640	2,802,640	3,055,840	3,067,320	3,959,260	3,041,080	1,190,580	1,184,570	1,226,570	1,208,080	1,186,060	1,197,140	1,166,810	1,117,820	1,070,510	1,081,840	1,015,900	1,047,770	1,048,210	1,072,500
Total stockholders’ equity	US$ in thousands	241,491	241,491	226,084	283,764	926,071	764,261	665,700	673,609	685,633	707,244	682,698	664,350	611,771	593,654	555,536	550,349	544,731	547,329	552,196	566,292
Financial leverage ratio		11.61	11.61	13.52	10.81	4.28	3.98	1.79	1.76	1.79	1.71	1.74	1.80	1.91	1.88	1.93	1.97	1.86	1.91	1.90	1.89

March 31, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,802,640K ÷ $241,491K
= 11.61

The financial leverage ratio of Forward Air Corporation has shown fluctuations over the past few years. It started at 1.89 as of June 30, 2020, and slightly increased to 1.90 by September 30, 2020. The ratio continued to trend upwards, reaching 1.97 by June 30, 2021, indicating an increase in the company's reliance on debt to finance its operations.

However, there was a slight decrease in the financial leverage ratio to 1.80 by June 30, 2022, followed by a more notable decline to 1.71 by December 31, 2022. The ratio then increased again, reaching 3.98 by December 31, 2023, and peaking at 13.52 by September 30, 2024. Such high values suggest a significant proportion of debt in the company's capital structure.

Subsequently, there was a decrease to 11.61 by December 31, 2024, where the ratio remained stable through March 31, 2025. The sudden spikes in financial leverage ratio in 2023 and 2024 may indicate a period of increased borrowing or potentially aggressive expansion by the company.

Overall, the evolving trend of the financial leverage ratio for Forward Air Corporation reflects varying levels of debt utilization and capital structure adjustments over the analyzed period.