JetBlue Airways Corp (JBLU)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 16,841,000 | 13,853,000 | 13,045,000 | 13,642,000 | 13,353,000 |
| Total stockholders’ equity | US$ in thousands | 2,641,000 | 3,337,000 | 3,563,000 | 3,849,000 | 3,943,000 |
| Financial leverage ratio | 6.38 | 4.15 | 3.66 | 3.54 | 3.39 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $16,841,000K ÷ $2,641,000K
= 6.38
The financial leverage ratio of JetBlue Airways Corp has shown a steady increase over the past five years, starting at 3.39 in December 2020 and reaching 6.38 by December 2024. This indicates that the company has been increasingly relying on debt to finance its operations and growth. While moderate leverage can enhance returns for shareholders, a high financial leverage ratio can also introduce greater financial risk, as the company may face challenges in meeting its debt obligations in adverse economic conditions. JetBlue's rising financial leverage ratio suggests a growing level of debt relative to equity in its capital structure, which investors and creditors should monitor closely for potential implications on the company's financial health and stability.
Peer comparison
Dec 31, 2024