MYR Group Inc (MYRG)
Financial leverage ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,578,750 | 1,560,730 | 1,464,800 | 1,360,240 | 1,398,860 | 1,329,960 | 1,264,370 | 1,205,580 | 1,121,090 | 1,063,830 | 1,050,830 | 1,019,250 | 995,859 | 1,018,910 | 950,086 | 993,246 | 1,007,870 | 988,013 | 806,695 | 795,218 |
| Total stockholders’ equity | US$ in thousands | 651,202 | 625,459 | 604,300 | 577,565 | 560,200 | 535,877 | 531,082 | 536,278 | 519,102 | 496,176 | 471,625 | 448,460 | 429,288 | 408,600 | 389,446 | 374,982 | 364,471 | 350,568 | 339,039 | 330,727 |
| Financial leverage ratio | 2.42 | 2.50 | 2.42 | 2.36 | 2.50 | 2.48 | 2.38 | 2.25 | 2.16 | 2.14 | 2.23 | 2.27 | 2.32 | 2.49 | 2.44 | 2.65 | 2.77 | 2.82 | 2.38 | 2.40 |
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 relatively stable over the past eight quarters, ranging from 2.25 to 2.50. The ratio indicates that, on average, the company's assets are financed by approximately 2.36 to 2.50 times the amount of equity. This suggests that the company relies more on debt financing rather than equity.
A financial leverage ratio of around 2.36 to 2.50 indicates moderate financial leverage, which carries a moderate level of financial risk. While debt can amplify returns when the company is performing well, it can also lead to increased financial vulnerability during economic downturns or industry challenges. Investors and creditors may monitor this ratio to assess the company's ability to meet its debt obligations and its overall financial health.
Overall, MYR Group Inc's financial leverage ratio shows a consistent trend and emphasizes the importance of maintaining a balance between debt and equity financing to sustain long-term financial stability and growth.
Peer comparison
Dec 31, 2023