Forward Air Corporation (FWRD)

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	2,979,530	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	1,047,390	1,048,210	1,072,500	1,066,240	990,878	980,633	936,557	885,577
Total stockholders’ equity	US$ in thousands	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	565,841	577,182	561,145	550,042	553,439
Financial leverage ratio		3.90	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	1.88	1.72	1.75	1.70	1.60

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,979,530K ÷ $764,261K
= 3.90

The financial leverage ratio for Forward Air Corporation has exhibited fluctuations over the last few quarters. The ratio indicates that, on average, the company's debt levels have been higher than its equity levels. A higher financial leverage ratio suggests that the company relies more on debt financing to support its operations and growth.

In the latest quarter, as of December 31, 2023, the financial leverage ratio stood at 3.90, indicating a significant increase from the previous quarter's ratio of 1.79. This spike could imply that Forward Air Corporation took on additional debt relative to its equity position.

It is important to note that a high financial leverage ratio can amplify the company's returns on equity when operating conditions are favorable. However, it also exposes the company to higher financial risk, especially during economic downturns or periods of rising interest rates.

Over the past few quarters, the financial leverage ratio has generally trended upwards, although there have been some fluctuations. It would be prudent for stakeholders to closely monitor this ratio to assess the company's financial risk and ability to meet its debt obligations in the future.