Kelly Services A Inc (KELYA)

Financial leverage ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	2,581,600	2,550,000	2,595,000	2,588,600	2,663,800	2,681,900	2,735,200	2,785,600	2,894,200	2,803,500	2,746,900	2,610,100	2,561,900	2,391,700	2,318,700	2,261,800	2,480,600	2,476,300	2,542,300	2,472,200
Total stockholders’ equity	US$ in thousands	1,253,700	1,235,700	1,241,900	1,247,800	1,254,200	1,252,700	1,276,900	1,273,500	1,336,200	1,274,100	1,243,800	1,215,700	1,203,000	1,166,100	1,145,600	1,100,100	1,264,500	1,247,800	1,268,200	1,177,800
Financial leverage ratio		2.06	2.06	2.09	2.07	2.12	2.14	2.14	2.19	2.17	2.20	2.21	2.15	2.13	2.05	2.02	2.06	1.96	1.98	2.00	2.10

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 been relatively stable over the past eight quarters, ranging from 2.06 to 2.19. This ratio indicates that the company has been financing its operations with a mix of equity and debt, with a higher proportion of debt compared to equity. The slight fluctuations in the ratio suggest that the company's capital structure may have remained consistent during this period. A financial leverage ratio above 1 typically indicates that the company relies more on debt financing, which can amplify returns but also increase financial risk. In the case of Kelly Services, Inc., the ratio consistently above 2 implies a significant reliance on debt in the capital structure, warranting further examination of the company's debt management and risk profile.