Quanta Services Inc (PWR)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 18,683,900 | 18,866,300 | 15,929,200 | 15,542,400 | 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 |
| Total stockholders’ equity | US$ in thousands | 7,317,730 | 7,070,620 | 6,567,640 | 6,356,620 | 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 |
| Financial leverage ratio | 2.55 | 2.67 | 2.43 | 2.45 | 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 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $18,683,900K ÷ $7,317,730K
= 2.55
The financial leverage ratio of Quanta Services Inc has shown a fluctuating trend over the past few years. The ratio stood at 2.17 as of March 31, 2020, indicating a moderate level of financial leverage. Subsequently, the ratio decreased to 1.93 by December 31, 2020, suggesting a reduction in the company's reliance on debt to finance its operations.
However, the financial leverage ratio started to increase again from March 31, 2021, reaching a peak of 2.67 by September 30, 2024. This upward trend implies that Quanta Services Inc has been resorting to higher levels of debt to fund its activities, which may increase financial risk and interest expenses.
It is important for stakeholders to monitor the financial leverage ratio closely to assess the company's ability to meet its debt obligations and manage its overall financial health effectively. A higher financial leverage ratio may indicate a higher risk profile for the company, while a lower ratio could signify a more conservative financial structure.
Peer comparison
Dec 31, 2024