Leidos Holdings Inc (LDOS)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 12,695,000 | 13,071,000 | 13,261,000 | 12,511,000 | 9,367,000 |
| Total stockholders’ equity | US$ in thousands | 4,201,000 | 4,299,000 | 4,291,000 | 3,862,000 | 3,413,000 |
| Financial leverage ratio | 3.02 | 3.04 | 3.09 | 3.24 | 2.74 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $12,695,000K ÷ $4,201,000K
= 3.02
The financial leverage ratio of Leidos Holdings Inc has exhibited some fluctuation over the past five years. The ratio decreased from 2.74 in 2019 to 3.24 in 2020, indicating an increase in financial leverage. Subsequently, there was a declining trend with ratios of 3.09 in 2021, 3.04 in 2022, and 3.02 in 2023.
A financial leverage ratio above 1 suggests that the company relies more on debt financing than equity financing. Therefore, the decreasing trend in the financial leverage ratio from 2020 to 2023 indicates a reduction in the company's reliance on debt to finance its operations over this period. This may imply a shift towards a more conservative capital structure or improved financial stability.
It would be important to further investigate the factors influencing these changes in the financial leverage ratio to gain a deeper understanding of Leidos Holdings Inc's capital structure decisions and financial health.
Peer comparison
Dec 31, 2023