Insight Enterprises Inc (NSIT)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,286,350 | 5,112,580 | 4,689,080 | 4,310,730 | 4,178,180 |
| Total stockholders’ equity | US$ in thousands | 1,735,730 | 1,638,070 | 1,509,230 | 1,342,430 | 1,160,320 |
| Financial leverage ratio | 3.62 | 3.12 | 3.11 | 3.21 | 3.60 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,286,350K ÷ $1,735,730K
= 3.62
Insight Enterprises Inc.'s financial leverage ratio has exhibited an increasing trend from 3.60 in 2019 to 3.62 in 2023, with fluctuations in between. This indicates that the company relies more on debt financing compared to equity to support its operations and growth initiatives over the years. A higher financial leverage ratio suggests a higher level of financial risk and dependency on debt, which could potentially lead to increased interest expenses and financial vulnerabilities during economic downturns. It is essential for stakeholders to closely monitor this ratio to assess the company's ability to meet its financial obligations and manage its debt levels effectively.
Peer comparison
Dec 31, 2023