Kelly Services A Inc (KELYA)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	2,581,600	2,663,800	2,894,200	2,561,900	2,480,600
Total stockholders’ equity	US$ in thousands	1,253,700	1,254,200	1,336,200	1,203,000	1,264,500
Financial leverage ratio		2.06	2.12	2.17	2.13	1.96

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,581,600K ÷ $1,253,700K
= 2.06

The financial leverage ratio of Kelly Services, Inc. has shown a fluctuating trend over the past five years. The ratio decreased from 1.96 in 2019 to 2.12 in 2023, then slightly increased to 2.17 in 2022, and decreased again to 2.13 in 2021 before rebounding to 2.06 in 2023. This indicates that the company has been relying more on debt to finance its operations and growth. While a higher leverage ratio can magnify returns on investment, it also increases financial risk as the company has higher debt obligations to fulfill. It is essential for investors and stakeholders to closely monitor Kelly Services, Inc.'s debt levels and repayment capabilities to assess its financial stability and sustainability.