Enviri Corporation (NVRI)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,650,230 | 2,854,550 | 2,790,850 | 3,053,910 | 2,993,290 |
| Total stockholders’ equity | US$ in thousands | 411,448 | 523,151 | 569,442 | 748,160 | 657,154 |
| Financial leverage ratio | 6.44 | 5.46 | 4.90 | 4.08 | 4.55 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,650,230K ÷ $411,448K
= 6.44
The financial leverage ratio of Enviri Corporation has been fluctuating over the past five years. The ratio decreased from 4.55 in 2020 to 4.08 in 2021, indicating a reduction in the company's reliance on debt financing. However, in the following years, the ratio increased significantly to 4.90 in 2022, 5.46 in 2023, and 6.44 in 2024. This upward trend suggests that Enviri Corporation has been increasingly using debt to finance its operations and investments. A high financial leverage ratio can indicate higher financial risk as the company is more leveraged, which may lead to difficulties in meeting debt obligations in the future. Investors and creditors should closely monitor this trend to assess the company's financial health and risk profile.