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

Company name
Symbol
Financial leverage ratio
Quanta Services Inc
PWR
2.59
Comfort Systems USA Inc
FIX
2.59
EMCOR Group Inc
EME
2.68