ODP Corp (ODP)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,529,000 | 3,886,000 | 4,149,000 | 4,865,000 | 5,558,000 |
| Total stockholders’ equity | US$ in thousands | 807,000 | 1,101,000 | 1,287,000 | 1,438,000 | 1,880,000 |
| Financial leverage ratio | 4.37 | 3.53 | 3.22 | 3.38 | 2.96 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,529,000K ÷ $807,000K
= 4.37
The financial leverage ratio for ODP Corp has shown a fluctuating trend over the past five years. Starting at 2.96 in December 31, 2020, the ratio increased to 4.37 by December 31, 2024. This indicates that the company's reliance on debt relative to equity has been rising steadily. While a higher leverage ratio can amplify returns on equity in profitable times, it also increases financial risk during economic downturns. ODP Corp should carefully monitor and manage its leverage ratio to ensure a healthy balance between debt and equity financing.
Peer comparison
Dec 31, 2024
Company name
Symbol
Financial leverage ratio
ODP Corp
ODP
4.37
Academy Sports Outdoors Inc
ASO
2.45
Dick’s Sporting Goods Inc
DKS
3.27