Hertz Global Holdings Inc (HTZ)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 21,802,000 | 24,605,000 | 22,497,000 | 19,783,000 | 16,908,000 |
| Total stockholders’ equity | US$ in thousands | 153,000 | 3,092,000 | 2,645,000 | 2,977,000 | 56,000 |
| Financial leverage ratio | 142.50 | 7.96 | 8.51 | 6.65 | 301.93 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $21,802,000K ÷ $153,000K
= 142.50
The financial leverage ratio, which measures the extent to which a company relies on debt to finance its operations, indicates Hertz Global Holdings Inc's debt utilization over the specified years. The trend shows a significant decline in the ratio from 301.93 in December 2020 to 6.65 in December 2021, suggesting a substantial reduction in debt relative to equity in the capital structure. However, the ratio increased to 8.51 in December 2022 and then slightly decreased to 7.96 in December 2023, indicating a fluctuation in the company's debt levels. The ratio spiked to 142.50 in December 2024, signaling a sudden increase in financial leverage, potentially due to a significant debt issuance or other financial activities. Overall, these fluctuations in the financial leverage ratio for Hertz Global Holdings Inc indicate varying levels of debt reliance over the years, which may have implications for the company's risk profile and financial stability.
Peer comparison
Dec 31, 2024