Enviri Corporation (NVRI)
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 | 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 | 2,367,470 | 2,558,490 | 2,534,690 | 1,737,560 |
| Total stockholders’ equity | US$ in thousands | 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 | 741,580 | 705,740 | 300,716 | 287,023 |
| Financial leverage ratio | 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 | 3.19 | 3.63 | 8.43 | 6.05 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,854,550K ÷ $523,151K
= 5.46
The financial leverage ratio of Enviri Corp has been gradually increasing over the past eight quarters. The ratio was 4.22 in Q1 2022 and has steadily increased to 5.46 in Q4 2023. This indicates that the company is relying more on debt to finance its operations and growth. A higher financial leverage ratio suggests that the company has a greater proportion of debt in its capital structure compared to equity.
Enviri Corp's increasing financial leverage ratio may be a cause for concern as higher leverage levels can amplify the company's financial risk and make it more vulnerable to economic downturns or rising interest rates. Investors and creditors may view a high financial leverage ratio as a red flag, signaling potential solvency issues or challenges in meeting debt obligations in the future.
It is important for Enviri Corp to carefully manage its debt levels and consider the potential impact of its increasing leverage on the overall financial health and stability of the company. Monitoring and optimizing the financial leverage ratio can help the company strike a balance between leveraging debt for growth opportunities and maintaining a healthy capital structure.