Hertz Global Holdings Inc (HTZ)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 24,605,000 | 22,497,000 | 19,783,000 | 16,908,000 | 24,627,000 |
| Total stockholders’ equity | US$ in thousands | 3,092,000 | 2,645,000 | 2,977,000 | 56,000 | 1,769,000 |
| Financial leverage ratio | 7.96 | 8.51 | 6.65 | 301.93 | 13.92 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $24,605,000K ÷ $3,092,000K
= 7.96
The financial leverage ratio of Hertz Global Holdings Inc. has fluctuated over the past three years. In 2021, the ratio was 6.65, indicating that the company relied more on debt to finance its operations relative to its equity. This was followed by an increase to 8.51 in 2022, suggesting a higher level of financial risk as the company became more leveraged. However, in 2023, the ratio decreased to 7.96, although it remains elevated compared to the 2021 level. This indicates that while Hertz Global Holdings Inc. has reduced its reliance on debt compared to the previous year, there is still a significant amount of debt in its capital structure. It is important for investors and stakeholders to monitor this trend in financial leverage to assess the company’s ability to meet its debt obligations and manage financial risk effectively.
Peer comparison
Dec 31, 2023