Oceaneering International Inc (OII)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	2,239,010	2,031,680	1,962,860	2,045,840	2,740,660
Total stockholders’ equity	US$ in thousands	628,020	519,741	504,961	552,094	1,069,350
Financial leverage ratio		3.57	3.91	3.89	3.71	2.56

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,239,010K ÷ $628,020K
= 3.57

The financial leverage ratio of Oceaneering International, Inc. has fluctuated over the past five years. The trend indicates that the company's reliance on debt to finance its operations has been gradually increasing from 2.56 in 2019 to 3.91 in 2022 before slightly decreasing to 3.57 in 2023. This implies that the company has been taking on more debt relative to its equity over these years.

A financial leverage ratio of 3.57 in 2023 suggests that for every dollar of equity, Oceaneering International has $3.57 of debt. This level of financial leverage indicates that the company's financial risk has increased, as higher leverage ratios can magnify both positive and negative financial outcomes. It is important for the company to carefully manage its debt levels to ensure that it can meet its financial obligations and maintain financial stability in varying economic conditions.