RPC Inc (RES)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,286,840 | 1,129,010 | 864,365 | 790,505 | 1,053,220 |
| Total stockholders’ equity | US$ in thousands | 1,022,510 | 857,735 | 641,791 | 631,567 | 830,333 |
| Financial leverage ratio | 1.26 | 1.32 | 1.35 | 1.25 | 1.27 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,286,840K ÷ $1,022,510K
= 1.26
The financial leverage ratio of RPC, Inc. has been fluctuating over the past five years. The ratio indicates that the company has been relying more on debt to finance its operations relative to its equity.
In 2023, the financial leverage ratio decreased to 1.26 from 1.32 in 2022, suggesting a reduced reliance on debt financing compared to the previous year. However, the ratio is still higher than in 2020 and 2019 when it was calculated at 1.25 and 1.27 respectively.
Overall, the trend in RPC, Inc.'s financial leverage ratio indicates a moderate level of leverage, which should be closely monitored to ensure the company's financial stability and growth prospects.
Peer comparison
Dec 31, 2023