Republic Services Inc (RSG)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 31,410,100 | 29,052,900 | 24,955,000 | 23,434,000 | 22,683,800 |
| Total stockholders’ equity | US$ in thousands | 10,542,300 | 9,686,000 | 8,978,900 | 8,483,900 | 8,118,200 |
| Financial leverage ratio | 2.98 | 3.00 | 2.78 | 2.76 | 2.79 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $31,410,100K ÷ $10,542,300K
= 2.98
The financial leverage ratio measures the company's use of debt to support its operations and growth. Republic Services, Inc.'s financial leverage ratio has fluctuated over the past five years, ranging from 2.76 to 3.00.
In 2023, the financial leverage ratio decreased slightly to 2.98 from the previous year's 3.00. This indicates that the company relied less on debt financing in 2023 compared to 2022. However, the ratio remains relatively high, suggesting a significant proportion of the company's assets are funded by debt.
Over the five-year period, the company's financial leverage ratio has generally been above 2.75, with the highest ratio recorded in 2022 and the lowest in 2020. This indicates a consistent level of debt utilization by Republic Services, Inc.
Investors and creditors typically look at the financial leverage ratio to assess the company's solvency and risk levels. A higher ratio indicates higher financial risk due to increased dependence on debt, while a lower ratio may suggest a more conservative financial structure. Therefore, the trend in Republic Services, Inc.'s financial leverage ratio suggests that the company has maintained a moderate to high level of leverage in its capital structure in recent years.
Peer comparison
Dec 31, 2023