Genpact Limited (G)
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 | 4,987,150 | 5,325,660 | 5,178,260 | 4,740,640 | 4,805,710 | 4,598,770 | 4,482,340 | 4,505,840 | 4,588,810 | 4,536,670 | 4,540,380 | 4,971,270 | 4,975,270 | 5,049,130 | 4,898,590 | 4,787,920 | 4,873,510 | 4,803,640 | 4,846,090 | 4,402,780 |
| Total stockholders’ equity | US$ in thousands | 2,389,610 | 2,394,690 | 2,337,760 | 2,298,370 | 2,248,390 | 2,009,450 | 1,932,860 | 1,925,330 | 1,826,160 | 1,731,850 | 1,750,440 | 1,847,390 | 1,897,130 | 1,952,890 | 1,838,970 | 1,749,620 | 1,834,230 | 1,777,180 | 1,660,610 | 1,573,080 |
| Financial leverage ratio | 2.09 | 2.22 | 2.22 | 2.06 | 2.14 | 2.29 | 2.32 | 2.34 | 2.51 | 2.62 | 2.59 | 2.69 | 2.62 | 2.59 | 2.66 | 2.74 | 2.66 | 2.70 | 2.92 | 2.80 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,987,150K ÷ $2,389,610K
= 2.09
The financial leverage ratio of Genpact Limited has shown a general downward trend over the period from March 31, 2020, to December 31, 2024. The ratio decreased from 2.80 on March 31, 2020, to 2.09 on December 31, 2024. This indicates that the company has been reducing its reliance on debt to finance its operations over time.
A financial leverage ratio of above 2 implies that the company has more debt than equity in its capital structure. While a decreasing trend in the financial leverage ratio can signal improved financial health and reduced risk, it is essential to consider the specific context of the industry and company's growth plans.
It is important for investors and stakeholders to carefully monitor changes in the financial leverage ratio as they could indicate shifts in the company's capital structure and overall financial risk profile.
Peer comparison
Dec 31, 2024