Rollins Inc (ROL)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,595,460 | 2,122,030 | 2,021,540 | 1,845,900 | 1,744,380 |
| Total stockholders’ equity | US$ in thousands | 1,155,570 | 1,267,200 | 1,111,220 | 964,651 | 833,109 |
| Financial leverage ratio | 2.25 | 1.67 | 1.82 | 1.91 | 2.09 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,595,460K ÷ $1,155,570K
= 2.25
The financial leverage ratio of Rollins, Inc. has shown fluctuations over the past five years. In 2023, the ratio increased to 2.25 from 1.67 in 2022, indicating a higher level of financial leverage. This may suggest that the company is relying more on debt to finance its operations and investments.
Comparing 2023 to 2021 and 2020, the financial leverage ratio has increased steadily, implying a potential trend of growing indebtedness. However, the ratio in 2023 is still lower than the level in 2019, when it was at 2.14.
It is essential to consider the implications of high financial leverage, as it can magnify both returns and risks for the company. Investors and stakeholders should monitor the trend of the financial leverage ratio over time to assess Rollins, Inc.'s financial health and risk profile.
Peer comparison
Dec 31, 2023