Oceaneering International Inc (OII)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,336,350 | 2,239,010 | 2,031,680 | 1,962,860 | 2,045,840 |
| Total stockholders’ equity | US$ in thousands | 714,259 | 628,020 | 519,741 | 504,961 | 552,094 |
| Financial leverage ratio | 3.27 | 3.57 | 3.91 | 3.89 | 3.71 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,336,350K ÷ $714,259K
= 3.27
The financial leverage ratio of Oceaneering International Inc has shown some fluctuation over the years. It was 3.71 at the end of December 31, 2020, increased to 3.89 by December 31, 2021 and further to 3.91 by December 31, 2022. However, there was a slight decrease in the financial leverage ratio to 3.57 by December 31, 2023, and a more significant drop to 3.27 by December 31, 2024.
A financial leverage ratio above 1 indicates that the company relies more on debt to finance its operations than on equity. In the case of Oceaneering International Inc, the trend of the financial leverage ratio increasing from 2020 to 2022 suggests a higher reliance on debt during those years. The subsequent decrease in the ratio in 2023 and 2024 could indicate a shift towards reducing debt or increasing equity in the company's capital structure.
Overall, Oceaneering International Inc's financial leverage ratio has shown variability, which may signify changes in the company's debt management or capital structure strategies over the years. Further analysis would be needed to understand the factors driving these fluctuations and their implications for the company's financial health and risk profile.
Peer comparison
Dec 31, 2024