ODP Corp (ODP)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,886,000 | 4,149,000 | 4,865,000 | 5,614,000 | 7,311,000 |
| Total stockholders’ equity | US$ in thousands | 1,101,000 | 1,287,000 | 1,438,000 | 1,880,000 | 2,173,000 |
| Financial leverage ratio | 3.53 | 3.22 | 3.38 | 2.99 | 3.36 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,886,000K ÷ $1,101,000K
= 3.53
The financial leverage ratio for ODP Corp has fluctuated over the past five years. In 2023, the ratio increased to 3.53 from 3.22 in 2022. This indicates that the company's reliance on debt to finance its operations and growth increased in the most recent year. Comparing this to the previous years, we see a similar trend with the ratio being relatively high in 2021 and 2019 at 3.38 and 3.36, respectively. The financial leverage ratio was lower in 2020 at 2.99.
Overall, it appears that ODP Corp has been consistently leveraged over the years, with the ratio fluctuating within a range. An increasing trend in the financial leverage ratio suggests a potential higher financial risk due to higher debt levels relative to equity. It would be important for stakeholders to closely monitor the company's debt management and financial health to ensure sustainability in the long term.
Peer comparison
Dec 31, 2023