Jacobs Solutions Inc. (J)
Financial leverage ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 11,759,000 | 14,617,100 | 14,660,400 | 14,632,600 | 12,354,400 |
| Total stockholders’ equity | US$ in thousands | 4,549,470 | 6,546,220 | 6,060,060 | 5,940,040 | 5,815,710 |
| Financial leverage ratio | 2.58 | 2.23 | 2.42 | 2.46 | 2.12 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $11,759,000K ÷ $4,549,470K
= 2.58
Jacobs Solutions Inc.'s financial leverage ratio has shown a fluctuating trend over the past five years. The ratio increased from 2.12 in 2020 to 2.58 in 2024, indicating a higher reliance on debt financing relative to equity. This suggests that the company's level of debt has been increasing in comparison to its equity, which may result in higher financial risk.
In 2023, the financial leverage ratio decreased to 2.23, showing a slight improvement in the company's leverage position. However, it again increased in 2024 to 2.58, surpassing the levels of the previous years.
Overall, the trend in Jacobs Solutions Inc.'s financial leverage ratio indicates a varying degree of leverage over the past five years. It is essential for the company to carefully manage its debt levels to ensure financial stability and sustainability in the long term.
Peer comparison
Sep 30, 2024