ODP Corp (ODP)
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 | 3,886,000 | 3,980,000 | 3,961,000 | 4,041,000 | 4,149,000 | 4,418,000 | 4,474,000 | 4,529,000 | 4,865,000 | 5,351,000 | 5,378,000 | 5,598,000 | 5,614,000 | 5,745,000 | 5,865,000 | 6,454,000 | 7,311,000 | 7,343,000 | 7,353,000 | 7,471,000 |
| Total stockholders’ equity | US$ in thousands | 1,101,000 | 1,155,000 | 1,161,000 | 1,148,000 | 1,287,000 | 1,499,000 | 1,513,000 | 1,492,000 | 1,438,000 | 1,862,000 | 1,841,000 | 1,960,000 | 1,880,000 | 1,795,000 | 1,717,000 | 2,135,000 | 2,173,000 | 2,127,000 | 2,082,000 | 2,106,000 |
| Financial leverage ratio | 3.53 | 3.45 | 3.41 | 3.52 | 3.22 | 2.95 | 2.96 | 3.04 | 3.38 | 2.87 | 2.92 | 2.86 | 2.99 | 3.20 | 3.42 | 3.02 | 3.36 | 3.45 | 3.53 | 3.55 |
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 shown some fluctuations over the past few quarters. The ratio has been generally above 3, indicating that the company has a higher level of debt in its capital structure compared to equity.
In the most recent quarter, the financial leverage ratio was 3.53, which was higher than the previous quarter at 3.45. This suggests that the company's reliance on debt has increased slightly, potentially increasing its financial risk.
Looking back over the past year, the financial leverage ratio has varied between 2.86 and 3.55. This indicates some degree of volatility in the company's capital structure and debt levels. It is important for investors and creditors to monitor these fluctuations to assess the company's ability to meet its financial obligations and manage its debt levels effectively.
Overall, while a higher financial leverage ratio can amplify returns for shareholders during periods of growth, it also increases the company's exposure to financial risk, particularly during economic downturns or unfavorable market conditions.
Peer comparison
Dec 31, 2023