ODP Corp (ODP)
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 | 3,529,000 | 3,691,000 | 3,653,000 | 3,735,000 | 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 | 5,558,000 | 5,745,000 | 5,865,000 | 6,454,000 |
| Total stockholders’ equity | US$ in thousands | 807,000 | 856,000 | 893,000 | 1,069,000 | 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 |
| Financial leverage ratio | 4.37 | 4.31 | 4.09 | 3.49 | 3.53 | 3.45 | 3.41 | 3.52 | 3.22 | 2.95 | 2.96 | 3.04 | 3.38 | 2.87 | 2.92 | 2.86 | 2.96 | 3.20 | 3.42 | 3.02 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,529,000K ÷ $807,000K
= 4.37
The financial leverage ratio of ODP Corp has shown fluctuations over the specified time period, ranging from 2.86 to 4.37. The ratio indicates the company's level of debt relative to its equity. A higher ratio suggests higher financial leverage, meaning the company relies more on debt financing.
From March 31, 2020, to June 30, 2022, the leverage ratio varied within a range of 2.86 to 3.42, indicating moderate debt levels. However, there was a notable increase in leverage from June 30, 2022, to December 31, 2024, reaching a peak of 4.37 on December 31, 2024. This upward trend in leverage may signify increased borrowing to fund operations or investments.
It is essential for stakeholders to monitor the financial leverage ratio closely, as high levels of debt can pose risks during economic downturns or interest rate fluctuations. Moreover, an excessively high leverage ratio may indicate potential financial distress or liquidity issues for the company.
Peer comparison
Dec 31, 2024