KBR Inc (KBR)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,663,000 | 5,565,000 | 5,566,000 | 6,204,000 | 5,705,000 |
| Total stockholders’ equity | US$ in thousands | 1,453,000 | 1,383,000 | 1,620,000 | 1,669,000 | 1,580,000 |
| Financial leverage ratio | 4.59 | 4.02 | 3.44 | 3.72 | 3.61 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,663,000K ÷ $1,453,000K
= 4.59
The financial leverage ratio of KBR Inc has fluctuated over the past five years. In December 2020, the ratio was 3.61, indicating that the company had $3.61 in debt for every dollar of equity. By December 2023, the ratio had increased to 4.02, suggesting a higher level of financial leverage. However, in December 2024, the ratio surged to 4.59, showing a significant increase in debt relative to equity. Overall, the trend in financial leverage ratio suggests that KBR Inc has been gradually taking on more debt in comparison to its equity over the years, which may increase the company's financial risk and affect its ability to meet its debt obligations in the long run. This indicates a need for caution and further evaluation of the company's financial position and risk management strategies.
Peer comparison
Dec 31, 2024