Ryder System Inc (R)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 15,778,000 | 14,395,000 | 13,835,000 | 12,932,000 | 14,475,300 |
| Total stockholders’ equity | US$ in thousands | 3,069,000 | 2,937,000 | 2,798,000 | 2,256,000 | 2,476,000 |
| Financial leverage ratio | 5.14 | 4.90 | 4.94 | 5.73 | 5.85 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $15,778,000K ÷ $3,069,000K
= 5.14
The financial leverage ratio of Ryder System, Inc. has shown fluctuating trends over the past five years. The ratio has ranged from a low of 4.90 in 2022 to a high of 5.85 in 2019, with the most recent value being 5.14 in 2023.
A higher financial leverage ratio indicates that a company is relying more on debt to finance its operations, while a lower ratio suggests a lower reliance on debt. With values above 5 in recent years, Ryder System, Inc. appears to have a relatively high level of financial leverage, indicating a significant proportion of debt in its capital structure.
It is important to closely monitor changes in the financial leverage ratio to assess the company's ability to meet its debt obligations and manage financial risk effectively. Trends in the ratio can provide insight into the company's financial health and the impact of its debt management strategies on overall performance.
Peer comparison
Dec 31, 2023