MasTec Inc (MTZ)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 8,975,280 | 9,373,510 | 9,293,260 | 7,121,390 | 5,227,850 |
| Total stockholders’ equity | US$ in thousands | 2,911,860 | 2,706,150 | 2,737,330 | 2,543,860 | 2,005,520 |
| Financial leverage ratio | 3.08 | 3.46 | 3.40 | 2.80 | 2.61 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $8,975,280K ÷ $2,911,860K
= 3.08
The financial leverage ratio for MasTec Inc has shown an increasing trend over the past five years. Starting at 2.61 times in December 31, 2020, it rose to 2.80 by December 31, 2021, indicating a slight increase in leverage. Subsequently, the ratio increased significantly to 3.40 by December 31, 2022, and further to 3.46 by December 31, 2023. This suggests that the company's reliance on debt financing has been increasing steadily during these years. However, there was a slight decrease to 3.08 by December 31, 2024, indicating a possible effort to reduce leverage or change in the company's capital structure.
Overall, the increasing trend in the financial leverage ratio implies that MasTec Inc has been taking on more debt relative to its equity, which may pose higher financial risks but could also signal strategic growth or investment decisions. It would be important to further analyze the company's debt management strategies and the impact of leverage on its financial health and performance.
Peer comparison
Dec 31, 2024