Mister Car Wash Inc (MCW)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Total assets | US$ in thousands | 2,881,540 | 2,686,230 | 2,448,100 |
| Total stockholders’ equity | US$ in thousands | 915,035 | 801,128 | 657,152 |
| Financial leverage ratio | 3.15 | 3.35 | 3.73 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,881,540K ÷ $915,035K
= 3.15
Mister Car Wash Inc's financial leverage ratio has shown a decreasing trend over the past three years. The ratio decreased from 3.73 in 2021 to 3.35 in 2022 and further to 3.15 in 2023. A financial leverage ratio greater than 1 indicates that the company relies more on debt to finance its operations than equity. A decreasing trend in the financial leverage ratio suggests that the company may be decreasing its reliance on debt financing relative to equity financing over time. This could indicate improved financial stability and reduced risk of financial distress. However, it is essential to assess the company's overall financial health and ability to service its debt obligations alongside this ratio.
Peer comparison
Dec 31, 2023