Graham Holdings Co (GHC)

Financial leverage ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	7,187,730	6,689,190	6,603,960	6,542,200	6,553,380	7,277,130	7,161,300	7,360,140	7,425,520	6,679,470	6,576,540	6,518,420	6,444,120	5,811,510	5,672,320	5,645,820	5,931,240	5,487,750	5,212,950	5,197,230
Total stockholders’ equity	US$ in thousands	3,975,740	3,688,500	3,809,480	3,747,220	3,731,380	4,259,710	4,308,690	4,460,160	4,399,580	3,963,840	3,968,090	3,857,620	3,759,300	3,239,810	3,206,670	3,206,060	3,319,240	3,052,010	3,032,810	2,993,600
Financial leverage ratio		1.81	1.81	1.73	1.75	1.76	1.71	1.66	1.65	1.69	1.69	1.66	1.69	1.71	1.79	1.77	1.76	1.79	1.80	1.72	1.74

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,187,730K ÷ $3,975,740K
= 1.81

The financial leverage ratio of Graham Holdings Co., which measures the proportion of the company's debt to its equity, has been relatively stable over the past eight quarters. The trend shows that the company has maintained a moderate level of financial leverage, with ratios ranging from 1.65 to 1.81.

A ratio of 1.81 in Q4 2023 indicates that for every dollar of equity, the company has $1.81 in debt. This suggests that Graham Holdings Co. relies more on debt financing compared to equity to finance its operations and investments.

While the ratios fluctuate slightly from quarter to quarter, they have generally remained within a narrow range, indicating a consistent approach to capital structure management. The stability of the financial leverage ratio implies that the company has been able to maintain a balanced level of debt relative to equity, which is crucial for financial stability and sustainability in the long term.

Overall, based on the financial leverage ratios over the past eight quarters, Graham Holdings Co. has managed its debt levels effectively, maintaining a prudent level of leverage to support its business activities.