Jacobs Solutions Inc. (J)
Financial leverage ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 14,617,100 | 14,660,400 | 14,632,600 | 12,354,400 | 11,462,700 |
| Total stockholders’ equity | US$ in thousands | 6,546,220 | 6,060,060 | 5,940,040 | 5,815,710 | 5,714,690 |
| Financial leverage ratio | 2.23 | 2.42 | 2.46 | 2.12 | 2.01 |
September 30, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $14,617,100K ÷ $6,546,220K
= 2.23
The financial leverage ratio of Jacobs Solutions Inc. has fluctuated over the past five years. The ratio decreased from 2.46 in 2021 to 2.12 in 2020, indicating a reduction in the company's reliance on debt to finance its operations. Subsequently, the ratio increased to 2.42 in 2022 before decreasing slightly to 2.23 in 2023.
A financial leverage ratio above 1 suggests that the company relies more on debt financing than equity financing. Jacobs Solutions Inc. has consistently maintained a ratio above 1 in the past five years, indicating a relatively high level of debt in its capital structure.
The declining trend in the financial leverage ratio from 2021 to 2020 may indicate a strategic shift towards reducing debt levels or optimizing the capital structure. However, the subsequent increase in the ratio in 2022 suggests a possible reversal of this trend, although the slight decrease in 2023 moderates this change.
Overall, the financial leverage ratio of Jacobs Solutions Inc. demonstrates fluctuation in the company's debt utilization over the years, highlighting the importance of monitoring and managing debt levels to maintain a healthy financial position.
Peer comparison
Sep 30, 2023