RPC Inc (RES)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,386,490 | 1,286,840 | 1,129,010 | 864,365 | 790,505 |
| Total stockholders’ equity | US$ in thousands | 1,078,290 | 1,022,510 | 857,735 | 641,791 | 631,567 |
| Financial leverage ratio | 1.29 | 1.26 | 1.32 | 1.35 | 1.25 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,386,490K ÷ $1,078,290K
= 1.29
RPC Inc's financial leverage ratio has shown some fluctuations over the past five years. The ratio increased from 1.25 in 2020 to 1.35 in 2021, reflecting a higher level of financial leverage. However, in the following years, the ratio decreased to 1.32 in 2022, 1.26 in 2023, and then increased slightly to 1.29 in 2024.
These fluctuations indicate that RPC Inc's reliance on debt to finance its operations has varied over the years. It is important for stakeholders to closely monitor this ratio to assess the company's ability to meet its financial obligations and manage its debt levels effectively. Additionally, further analysis of the company's profitability and cash flow may provide insights into the reasons behind these fluctuations in the financial leverage ratio.
Peer comparison
Dec 31, 2024