Geo Group Inc (GEO)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,696,410 | 3,760,380 | 4,537,410 | 4,460,130 | 4,317,530 |
| Total stockholders’ equity | US$ in thousands | 1,291,770 | 1,166,400 | 976,211 | 913,102 | 996,830 |
| Financial leverage ratio | 2.86 | 3.22 | 4.65 | 4.88 | 4.33 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,696,410K ÷ $1,291,770K
= 2.86
The financial leverage ratio of Geo Group, Inc. has exhibited a fluctuating trend over the past five years, ranging from 2.86 in 2023 to a peak of 4.88 in 2020. The ratio indicates the company's reliance on debt to finance its operations and investments.
The declining trend from 2020 to 2023 suggests that the company has been reducing its financial leverage by potentially paying down debt or increasing equity in its capital structure. A lower financial leverage ratio generally indicates lower financial risk and a stronger financial position, as the company is less reliant on debt financing.
However, the financial leverage ratio of 2.86 in 2023 is still relatively high compared to historical levels, indicating that Geo Group, Inc. continues to have a significant proportion of debt in its capital structure. Investors and stakeholders should closely monitor the company's leverage levels to ensure long-term financial stability and sustainability.
Peer comparison
Dec 31, 2023