Genpact Limited (G)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,805,710 | 4,588,810 | 4,975,270 | 4,873,510 | 4,454,180 |
| Total stockholders’ equity | US$ in thousands | 2,248,390 | 1,826,160 | 1,897,130 | 1,834,230 | 1,689,170 |
| Financial leverage ratio | 2.14 | 2.51 | 2.62 | 2.66 | 2.64 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,805,710K ÷ $2,248,390K
= 2.14
Genpact Ltd's financial leverage ratio has shown a decreasing trend over the past five years. The ratio declined from 2.64 in 2019 to 2.14 in 2023. This indicates that the company has been reducing its reliance on debt to finance its operations and investments. A lower financial leverage ratio generally suggests lower financial risk, as the company is less dependent on borrowed funds. Genpact's decreasing trend in financial leverage ratio may indicate a more conservative approach to capital structure and financial management. However, it is essential to consider the specific circumstances and industry benchmarks when assessing the implications of changes in financial leverage ratios for a company.
Peer comparison
Dec 31, 2023