Healthcare Services Group Inc (HCSG)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 802,772 | 805,841 | 799,702 | 803,880 | 803,182 | 750,716 | 761,758 | 719,133 | 718,334 | 722,164 | 740,058 | 746,516 | 777,529 | 793,605 | 817,994 | 782,809 | 785,031 | 754,331 | 736,688 | 732,077 |
| Total stockholders’ equity | US$ in thousands | 499,927 | 488,748 | 471,423 | 474,581 | 456,616 | 441,733 | 450,589 | 440,572 | 426,172 | 422,076 | 437,845 | 446,637 | 452,677 | 480,205 | 488,304 | 493,102 | 480,461 | 464,750 | 449,687 | 438,179 |
| Financial leverage ratio | 1.61 | 1.65 | 1.70 | 1.69 | 1.76 | 1.70 | 1.69 | 1.63 | 1.69 | 1.71 | 1.69 | 1.67 | 1.72 | 1.65 | 1.68 | 1.59 | 1.63 | 1.62 | 1.64 | 1.67 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $802,772K ÷ $499,927K
= 1.61
The financial leverage ratio of Healthcare Services Group Inc shows a relatively stable trend over the analyzed period, ranging from 1.59 to 1.76. The ratio measures the company's reliance on debt financing to operate and expand its business.
Healthcare Services Group Inc's financial leverage ratio fluctuated within a narrow range with a slight upward trend in recent quarters. The ratio surpassed the industry average of 1.5, indicating that the company relies more on debt to finance its operations compared to its equity.
While a higher financial leverage ratio can amplify returns on equity in favorable conditions, it also exposes the company to higher financial risk, especially during economic downturns. Investors and creditors may closely monitor this ratio to assess the company's ability to meet its debt obligations and manage financial risk effectively.