JetBlue Airways Corp (JBLU)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 13,853,000 | 13,045,000 | 13,642,000 | 13,406,000 | 11,918,000 |
| Total stockholders’ equity | US$ in thousands | 3,337,000 | 3,563,000 | 3,849,000 | 3,951,000 | 4,799,000 |
| Financial leverage ratio | 4.15 | 3.66 | 3.54 | 3.39 | 2.48 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $13,853,000K ÷ $3,337,000K
= 4.15
The financial leverage ratio of Jetblue Airways Corp has shown an increasing trend over the five-year period from 2019 to 2023. The ratio has grown from 2.48 in 2019 to 4.15 in 2023, indicating a significant rise in the company's reliance on debt to finance its operations and growth. This escalating trend suggests that Jetblue's level of financial leverage has been intensifying over the years, which may lead to higher interest expenses and financial risks. It is crucial for stakeholders to closely monitor the company's ability to manage its debt levels effectively and maintain a sustainable capital structure amidst this increasing financial leverage ratio.
Peer comparison
Dec 31, 2023