MYR Group Inc (MYRG)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,578,750 | 1,398,860 | 1,121,090 | 995,859 | 1,007,870 |
| Total stockholders’ equity | US$ in thousands | 651,202 | 560,200 | 519,102 | 429,288 | 364,471 |
| Financial leverage ratio | 2.42 | 2.50 | 2.16 | 2.32 | 2.77 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,578,750K ÷ $651,202K
= 2.42
The financial leverage ratio of MYR Group Inc has been fluctuating over the past five years. The ratio decreased from 2.77 in 2019 to 2.16 in 2021, reflecting a reduction in financial leverage during that period. However, the ratio increased to 2.50 in 2022, before declining again to 2.42 in 2023.
A financial leverage ratio of 2.42 as of December 31, 2023, suggests that the company's level of debt is 2.42 times its equity. This indicates that MYR Group Inc relies more on debt financing than equity financing to support its operations and growth. The decreasing trend in the financial leverage ratio over the past few years indicates a conservative approach towards debt management.
It is important for investors and stakeholders to closely monitor changes in the financial leverage ratio as high levels of financial leverage can increase the company's risk profile, especially during economic downturns or periods of financial instability. Overall, MYR Group Inc's financial leverage ratio has shown some variability, and further analysis would be required to assess the company's overall financial stability and risk management strategies.
Peer comparison
Dec 31, 2023