Kratos Defense & Security Solutions (KTOS)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,950,900 | 1,632,500 | 1,551,500 | 1,589,500 | 1,562,800 |
| Total stockholders’ equity | US$ in thousands | 1,353,200 | 976,000 | 936,300 | 945,100 | 925,300 |
| Financial leverage ratio | 1.44 | 1.67 | 1.66 | 1.68 | 1.69 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,950,900K ÷ $1,353,200K
= 1.44
The financial leverage ratio of Kratos Defense & Security Solutions demonstrates a relatively stable trend over the five-year period from December 31, 2020, to December 31, 2024. Beginning at 1.69 in 2020, the ratio slightly decreased to 1.68 in 2021 and further to 1.66 in 2022. By the end of 2023, it rose marginally to 1.67 before declining more notably to 1.44 in 2024.
This ratio indicates that the company has maintained a consistent level of leverage, with a minor downward adjustment observed in the most recent year. The decline from 1.67 to 1.44 suggests a reduction in financial leverage, implying that the company has potentially decreased its reliance on debt relative to equity in 2024.
Overall, the trend reflects a stable leverage profile with a notable decrease in 2024, which could be interpreted as a strategic shift towards lower financial risk or improved debt management. This adjustment may impact the company's financial flexibility and risk profile, potentially enhancing its creditworthiness or investor confidence.
Peer comparison
Dec 31, 2024