Robert Half International Inc (RHI)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	3,010,790	2,964,490	2,952,360	2,557,420	2,311,410
Total stockholders’ equity	US$ in thousands	1,588,350	1,568,560	1,381,050	1,205,290	1,143,680
Financial leverage ratio		1.90	1.89	2.14	2.12	2.02

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,010,790K ÷ $1,588,350K
= 1.90

The financial leverage ratio of Robert Half Inc has shown some fluctuation over the past five years. The ratio was 1.90 in 2023, slightly higher compared to the previous year when it was 1.89. However, it is lower than the ratios recorded in 2021 (2.14), 2020 (2.12), and 2019 (2.02).

A financial leverage ratio of 1.90 indicates that the company has $1.90 in assets for every $1 of equity. This suggests that Robert Half Inc relies more on debt financing than equity to support its operations and growth initiatives. The decrease in the ratio from 2021 to 2022 may signify a reduction in debt relative to equity in the company's capital structure, which could be a positive sign for investors and creditors. However, the ratio is still relatively high, indicating a higher level of financial risk associated with the company's capital structure.

Overall, the trend in Robert Half Inc's financial leverage ratio suggests a varying degree of leverage over the years, potentially impacting the company's financial stability and risk profile. Investors and stakeholders may want to monitor this ratio closely to assess the company's capital structure and leverage levels in relation to its financial performance and market conditions.