NV5 Global Inc (NVEE)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,170,590 | 935,723 | 961,943 | 881,175 | 893,137 |
| Total stockholders’ equity | US$ in thousands | 775,795 | 694,240 | 624,720 | 394,069 | 355,963 |
| Financial leverage ratio | 1.51 | 1.35 | 1.54 | 2.24 | 2.51 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,170,590K ÷ $775,795K
= 1.51
The financial leverage ratio of NV5 Global Inc has fluctuated over the last five years, ranging from 1.35 to 2.51. A higher financial leverage ratio indicates greater reliance on debt to finance operations, while a lower ratio suggests a lesser dependence on debt.
In 2023, the financial leverage ratio increased to 1.51 from 1.35 in 2022, indicating a slightly higher level of debt utilization in the company's capital structure. Despite this increase, the ratio remains within a moderate range, signaling a relatively balanced mix of debt and equity financing.
Compared to the significantly higher ratios of 2.24 in 2020 and 2.51 in 2019, the recent ratios suggest that NV5 Global Inc has taken steps to reduce its debt levels and improve its financial leverage position. This trend may indicate a strategic shift towards a more conservative capital structure and reduced financial risk.
Overall, the fluctuation in the financial leverage ratio of NV5 Global Inc reflects changes in the company's financing decisions and risk management strategies over the years. Investors and analysts may monitor this ratio closely to assess the company's ability to meet its financial obligations and evaluate its overall financial health.
Peer comparison
Dec 31, 2023