Geo Group Inc (GEO)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,632,080 | 3,696,410 | 3,760,380 | 4,537,410 | 4,460,130 |
| Total stockholders’ equity | US$ in thousands | 1,334,940 | 1,291,770 | 1,165,090 | 975,016 | 912,082 |
| Financial leverage ratio | 2.72 | 2.86 | 3.23 | 4.65 | 4.89 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,632,080K ÷ $1,334,940K
= 2.72
The financial leverage ratio of Geo Group Inc has shown a declining trend over the past five years, decreasing from 4.89 in December 2020 to 2.72 in December 2024. A decreasing trend in the leverage ratio indicates that the company's reliance on debt to finance its operations has been decreasing over time. This could suggest improved financial stability and reduced risk of financial distress for the company. A lower financial leverage ratio generally implies a lower level of financial risk and greater financial flexibility for the company. Geo Group Inc's decreasing financial leverage ratio reflects a more conservative approach to capital structure management, which may be viewed positively by investors and creditors.
Peer comparison
Dec 31, 2024