Frontier Communications Parent Inc (FYBR)
Financial leverage ratio
| 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 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 20,614 | 20,859,000 | 20,194,000 | 20,197,000 | 21,613,000 | 20,509,000 | 19,150,000 | 19,398,000 | 18,624,000 | 18,273,000 | 18,035,000 | 16,755,000 | 16,481,000 | 15,388,000 | 15,102,000 | 16,960,000 | 16,795,000 | 16,787,000 | 17,467,000 | 17,488,000 |
| Total stockholders’ equity | US$ in thousands | 4,941 | 5,066,000 | 5,137,000 | 5,259,000 | 5,279,000 | 5,240,000 | 5,192,000 | 5,163,000 | 5,134,000 | 4,933,000 | 4,796,000 | 4,678,000 | 4,600,000 | 4,385,000 | 4,248,000 | -4,830,000 | -4,900,000 | -4,926,000 | -5,097,000 | -4,493,000 |
| Financial leverage ratio | 4.17 | 4.12 | 3.93 | 3.84 | 4.09 | 3.91 | 3.69 | 3.76 | 3.63 | 3.70 | 3.76 | 3.58 | 3.58 | 3.51 | 3.56 | — | — | — | — | — |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $20,614K ÷ $4,941K
= 4.17
Frontier Communications Parent Inc's financial leverage ratio has shown a fluctuating trend over the past few years, which indicates variations in the company's capital structure. The financial leverage ratio stood at 3.56 as of June 30, 2021, and gradually increased to 4.17 by December 31, 2024. This indicates that the company has been relying more on debt financing compared to equity financing during this period.
A higher financial leverage ratio implies that the company has a higher level of financial risk, as it indicates a larger proportion of debt in its capital structure. While debt can provide tax benefits and leverage returns, too much debt can lead to financial distress, especially if the company's operational performance weakens.
It is noteworthy that Frontier Communications Parent Inc's financial leverage ratio surpassed 4.0 by the end of 2024, which could be a cause for concern as it indicates a relatively high degree of leverage. Investors and creditors generally monitor this ratio closely to assess the company's ability to meet its debt obligations and its overall financial health. Management may need to evaluate its capital structure to ensure it remains sustainable in the long term.
Peer comparison
Dec 31, 2024