Quanta Services Inc (PWR)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 18,683,900 | 16,237,200 | 13,464,300 | 12,855,200 | 8,398,270 |
| Total stockholders’ equity | US$ in thousands | 7,317,730 | 6,272,240 | 5,383,460 | 5,112,300 | 4,344,180 |
| Financial leverage ratio | 2.55 | 2.59 | 2.50 | 2.51 | 1.93 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $18,683,900K ÷ $7,317,730K
= 2.55
Quanta Services Inc's financial leverage ratio has shown an increasing trend over the past five years, rising from 1.93 in December 2020 to 2.55 in December 2024. This indicates that the company's reliance on debt to finance its operations has been growing steadily. A higher financial leverage ratio suggests that a larger portion of the company's assets is funded by debt rather than equity. While an increase in leverage can amplify returns when business is booming, it also introduces greater financial risk, especially in times of economic downturn or rising interest rates. It is crucial for investors and stakeholders to closely monitor Quanta Services Inc's leverage levels to assess the company's financial health and ability to manage debt obligations.
Peer comparison
Dec 31, 2024