Godaddy Inc (GDDY)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 8,235,400 | 7,564,900 | 6,973,500 | 7,417,100 | 6,432,900 |
| Total stockholders’ equity | US$ in thousands | 692,100 | 62,200 | -331,800 | 81,700 | -12,900 |
| Financial leverage ratio | 11.90 | 121.62 | — | 90.78 | — |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $8,235,400K ÷ $692,100K
= 11.90
The financial leverage ratio provides insights into a company's long-term debt and its ability to meet financial obligations. For Godaddy Inc, the trend of the financial leverage ratio over the years shows significant fluctuations.
As of December 31, 2020, the financial leverage ratio was not available. In 2021, the ratio stood at a notably high level of 90.78, indicating that the company relied more on debt to finance its operations. The substantial increase in the ratio from 2021 to 2023, reaching 121.62, suggests that Godaddy Inc significantly increased its debt levels relative to its equity during this period, which could potentially raise concerns about the company's financial stability and burden of interest payments.
However, the ratio sharply decreased to 11.90 by December 31, 2024, reflecting a considerable reduction in the company's debt relative to its equity, which could indicate a positive shift towards a less leveraged financial structure. It would be essential to monitor Godaddy Inc's future financial decisions to better understand the reasons behind these significant fluctuations in its financial leverage ratio and evaluate the company's overall financial health and risk levels.
Peer comparison
Dec 31, 2024