Hertz Global Holdings Inc (HTZ)
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 | 21,802,000 | 22,979,000 | 25,185,000 | 24,310,000 | 24,605,000 | 25,554,000 | 26,095,000 | 23,749,000 | 22,497,000 | 21,693,000 | 22,066,000 | 20,941,000 | 19,783,000 | 19,593,000 | 19,007,000 | 16,610,000 | 16,908,000 | 18,757,000 | 23,116,000 | 25,842,000 |
| Total stockholders’ equity | US$ in thousands | 153,000 | 681,000 | 1,958,000 | 2,812,000 | 3,092,000 | 3,390,000 | 2,839,000 | 2,774,000 | 2,645,000 | 2,761,000 | 2,729,000 | 2,702,000 | 2,977,000 | 4,206,000 | 3,620,000 | 265,000 | 56,000 | 341,000 | 559,000 | 1,372,000 |
| Financial leverage ratio | 142.50 | 33.74 | 12.86 | 8.65 | 7.96 | 7.54 | 9.19 | 8.56 | 8.51 | 7.86 | 8.09 | 7.75 | 6.65 | 4.66 | 5.25 | 62.68 | 301.93 | 55.01 | 41.35 | 18.84 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $21,802,000K ÷ $153,000K
= 142.50
The financial leverage ratio of Hertz Global Holdings Inc has exhibited significant fluctuations over the past few years. The ratio was relatively stable during the first half of 2020, hovering around 18.84 in March and increasing slightly to 41.35 in June. However, by December 2020, the ratio spiked to 301.93, indicating a substantial increase in financial leverage.
Subsequently, there was a notable decline in the financial leverage ratio in the first half of 2021, dropping to 5.25 in June and further decreasing to 4.66 in September. This substantial decrease may suggest efforts to reduce debt levels or improve financial stability during this period.
The ratio showed some volatility in the following quarters, fluctuating between 6.65 and 9.19, with no clear trend up to the end of 2023. However, by June 2024, the ratio increased significantly to 12.86, indicating higher financial leverage compared to the previous quarters.
The most noteworthy increase in the financial leverage ratio occurred by the end of 2024, reaching 142.50. This surge could signal a substantial increase in debt relative to equity, which may raise concerns about the company's financial risk and ability to meet its debt obligations.
In conclusion, the financial leverage ratio of Hertz Global Holdings Inc has displayed significant variability over the observed period, with periods of both high and low leverage. It is essential for stakeholders to closely monitor these fluctuations to assess the company's financial risk and sustainability.
Peer comparison
Dec 31, 2024