Enviri Corporation (NVRI)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,650,230 | 2,802,080 | 2,768,670 | 2,790,280 | 2,854,550 | 2,837,440 | 2,852,640 | 2,824,990 | 2,790,850 | 2,771,400 | 2,798,960 | 3,051,460 | 3,053,910 | 3,038,170 | 3,022,100 | 2,990,340 | 2,993,290 | 2,945,490 | 2,926,270 | 2,347,170 |
| Total stockholders’ equity | US$ in thousands | 411,448 | 483,989 | 485,666 | 500,941 | 523,151 | 563,721 | 577,492 | 569,457 | 569,442 | 574,518 | 593,324 | 722,808 | 748,160 | 695,536 | 693,503 | 659,974 | 657,154 | 714,292 | 715,179 | 710,853 |
| Financial leverage ratio | 6.44 | 5.79 | 5.70 | 5.57 | 5.46 | 5.03 | 4.94 | 4.96 | 4.90 | 4.82 | 4.72 | 4.22 | 4.08 | 4.37 | 4.36 | 4.53 | 4.55 | 4.12 | 4.09 | 3.30 |
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 shown a consistent upward trend over the past few years, indicating an increasing level of financial leverage. The ratio has steadily increased from 3.30 on March 31, 2020, to 6.44 on December 31, 2024. This suggests that the company has been relying more on debt financing relative to equity to fund its operations and growth.
A higher financial leverage ratio implies that the company has a higher level of debt in its capital structure, which may lead to higher financial risk and reduced financial flexibility. It can also indicate that the company is highly leveraged and may face challenges in meeting its debt obligations, especially in times of economic downturns or fluctuations in the industry.
It is important for stakeholders to carefully monitor the trend in the financial leverage ratio and assess the company's ability to manage its debt levels effectively. Additionally, investors should consider the impact of the increasing financial leverage on the company's overall financial health and performance.