Mister Car Wash, Inc. Common Stock (MCW)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,101,800 | 2,881,540 | 2,686,230 | 2,448,100 | 1,948,450 |
| Total stockholders’ equity | US$ in thousands | 998,352 | 915,035 | 801,128 | 657,152 | 16,650 |
| Financial leverage ratio | 3.11 | 3.15 | 3.35 | 3.73 | 117.02 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,101,800K ÷ $998,352K
= 3.11
The financial leverage ratio of Mister Car Wash, Inc. Common Stock has shown a significant decline over the years based on the provided data. In December 2020, the financial leverage ratio stood at a high level of 117.02, indicating a heavy reliance on debt to finance operations. However, there has been a substantial reduction in leverage since then, with the ratio declining to 3.73 by December 2021, and further decreasing to 3.35, 3.15, and 3.11 in the subsequent years up to December 2024.
This downward trend suggests that the company has been reducing its reliance on debt as a source of funding, which could indicate improved financial stability and a lower risk of financial distress. A decreasing financial leverage ratio often signals a stronger financial position, as the company becomes less vulnerable to the risks associated with high levels of debt. Investors and creditors may view this trend positively, as it implies a healthier balance between debt and equity in the company's capital structure.
Peer comparison
Dec 31, 2024