KBR Inc (KBR)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,565,000 | 5,566,000 | 6,204,000 | 5,705,000 | 5,360,000 |
| Total stockholders’ equity | US$ in thousands | 1,383,000 | 1,620,000 | 1,669,000 | 1,580,000 | 1,839,000 |
| Financial leverage ratio | 4.02 | 3.44 | 3.72 | 3.61 | 2.91 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,565,000K ÷ $1,383,000K
= 4.02
The financial leverage ratio of KBR Inc has exhibited variability over the past five years, ranging from 2.91 in 2019 to 4.02 in 2023. This ratio indicates the degree to which the company is relying on debt to finance its operations and growth. An increasing trend in the financial leverage ratio suggests a higher proportion of debt in the company's capital structure, which can magnify returns on equity but also increase financial risk. Conversely, a decreasing trend implies a lower reliance on debt for financing, which may indicate a more conservative approach to capital structure. Overall, KBR Inc's financial leverage ratio has experienced fluctuations, which may reflect changing strategies in capital allocation and financing decisions over the years.
Peer comparison
Dec 31, 2023