Godaddy Inc (GDDY)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 7,564,900 | 6,973,500 | 7,417,100 | 6,432,900 | 6,301,200 |
| Total stockholders’ equity | US$ in thousands | 62,200 | -331,800 | 81,700 | -12,900 | 772,000 |
| Financial leverage ratio | 121.62 | — | 90.78 | — | 8.16 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,564,900K ÷ $62,200K
= 121.62
The financial leverage ratio of Godaddy Inc has seen fluctuations over the five-year period presented. In 2019, the ratio was at a relatively low level of 8.16, indicating a low level of financial leverage and dependence on debt to finance its operations. Subsequently, the ratio significantly increased to 90.78 in 2021 and further to 121.62 in 2023.
The substantial increase in the financial leverage ratio from 2019 to 2021 suggests that Godaddy Inc has increased its reliance on debt to fund its operations and investments during this period. A higher financial leverage ratio indicates a higher proportion of debt in the company's capital structure compared to equity.
The absence of data for 2020 and 2022 makes it challenging to ascertain the trend and continuity in the company's financial leverage strategy. However, the sharp increase from 2021 to 2023 might signal a shift towards more aggressive financing through debt.
It is important for stakeholders to closely monitor Godaddy Inc's financial leverage ratio over time to assess the risks associated with its debt levels and financial stability. An increasing ratio could indicate higher financial risk and interest obligations, while a decreasing ratio may indicate a more conservative capital structure.
Peer comparison
Dec 31, 2023