Healthcare Services Group Inc (HCSG)
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 | 790,652 | 750,716 | 761,758 | 719,133 | 720,836 | 722,164 | 740,058 | 746,516 | 777,529 | 793,603 | 817,994 | 782,809 | 785,031 | 754,331 | 736,688 | 732,077 | 722,592 | 726,359 | 710,131 | 722,924 |
| Total stockholders’ equity | US$ in thousands | 456,616 | 441,733 | 450,589 | 440,572 | 418,279 | 422,076 | 437,845 | 446,637 | 452,677 | 480,205 | 488,304 | 493,102 | 480,461 | 464,750 | 449,687 | 438,179 | 460,305 | 455,299 | 449,648 | 442,549 |
| Financial leverage ratio | 1.73 | 1.70 | 1.69 | 1.63 | 1.72 | 1.71 | 1.69 | 1.67 | 1.72 | 1.65 | 1.68 | 1.59 | 1.63 | 1.62 | 1.64 | 1.67 | 1.57 | 1.60 | 1.58 | 1.63 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $790,652K ÷ $456,616K
= 1.73
Healthcare Services Group, Inc.'s financial leverage ratio has shown some fluctuation over the past eight quarters, ranging from 1.63 in Q1 2023 to 1.73 in Q4 2023. The ratio indicates that the company has been using a moderate level of financial leverage to support its operations and growth. This suggests that a significant portion of the company's assets are funded by debt as opposed to equity.
The upward trend in the financial leverage ratio from Q1 2023 to Q4 2023 may suggest an increase in the company's reliance on debt financing during this period. While a higher leverage ratio can magnify returns on equity when the business is performing well, it also increases financial risk, as the company must meet its debt obligations regardless of its operational performance.
It is essential for stakeholders to closely monitor changes in the financial leverage ratio to assess the company's ability to manage debt effectively and maintain financial stability. Additionally, further analysis of the company's debt structure and overall financial health would provide a more comprehensive understanding of its leverage position.