Quanta Services Inc (PWR)
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 | 16,237,200 | 15,188,400 | 14,740,800 | 14,039,100 | 13,464,300 | 13,296,600 | 13,049,600 | 13,015,100 | 12,855,200 | 10,675,700 | 8,720,600 | 8,557,410 | 8,398,270 | 8,325,490 | 8,089,630 | 8,228,940 | 8,331,680 | 8,865,090 | 8,021,820 | 7,652,520 |
| Total stockholders’ equity | US$ in thousands | 6,272,240 | 5,987,310 | 5,720,930 | 5,513,420 | 5,383,460 | 5,196,050 | 5,127,020 | 5,137,520 | 5,112,300 | 4,630,710 | 4,486,730 | 4,374,940 | 4,344,180 | 4,151,950 | 3,914,430 | 3,790,490 | 4,050,290 | 3,907,410 | 3,774,920 | 3,723,740 |
| Financial leverage ratio | 2.59 | 2.54 | 2.58 | 2.55 | 2.50 | 2.56 | 2.55 | 2.53 | 2.51 | 2.31 | 1.94 | 1.96 | 1.93 | 2.01 | 2.07 | 2.17 | 2.06 | 2.27 | 2.13 | 2.06 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $16,237,200K ÷ $6,272,240K
= 2.59
Quanta Services, Inc.'s financial leverage ratio has displayed relative stability over the past eight quarters, ranging from 2.50 to 2.59. The ratio indicates that the company's assets are financed primarily by debt rather than equity. The consistency in the ratio suggests that Quanta Services has maintained a steady level of leverage, which may imply a consistent borrowing strategy or a stable capital structure.
A financial leverage ratio of around 2.50 to 2.59 typically suggests moderate financial risk, as the company is relying more on debt to finance its operations. Investors and stakeholders may view this ratio as indicating a balance between debt and equity in the company's capital structure. It is important to note that higher leverage ratios indicate higher financial risk as the company may face challenges in meeting its debt obligations in adverse economic conditions.
Overall, Quanta Services, Inc.'s financial leverage ratio trend suggests a consistent level of leverage over the past two years, providing insights into the company's capital structure and risk profile.
Peer comparison
Dec 31, 2023