Hertz Global Holdings Inc (HTZ)
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 | 24,605,000 | 25,554,000 | 26,095,000 | 23,749,000 | 22,497,000 | 21,694,000 | 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 | 24,627,000 | 25,541,000 | 26,354,000 | 24,030,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 1,769,000 | 1,874,000 | 964,000 | 922,000 |
| Financial leverage ratio | 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 | 13.92 | 13.63 | 27.34 | 26.06 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $24,605,000K ÷ $3,092,000K
= 7.96
The financial leverage ratio reflects the extent to which a company uses debt to finance its operations and assets. Hertz Global Holdings Inc. has shown variability in its financial leverage ratio throughout the quarters. In Q2 of 2023, the ratio was highest at 9.19, indicating a higher reliance on debt to fund its activities. However, in Q3 and Q4 of 2023, the ratio slightly decreased to 7.54 and 7.96, respectively.
Comparing to the previous year's Q4 2022 ratio of 8.51, the Q4 2023 ratio showed a modest increase. It suggests that Hertz continued to maintain a relatively high level of financial leverage, which could imply higher risk due to the increased reliance on debt financing. The trend in the financial leverage ratio should be closely monitored to assess the company's ability to manage its debt levels effectively and maintain financial stability.
Peer comparison
Dec 31, 2023