Saia Inc (SAIA)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	2,583,560	2,174,710	1,845,250	1,548,770	1,415,690
Total stockholders’ equity	US$ in thousands	1,941,490	1,579,340	1,220,330	961,288	815,226
Financial leverage ratio		1.33	1.38	1.51	1.61	1.74

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,583,560K ÷ $1,941,490K
= 1.33

The financial leverage ratio of Saia Inc. has been steadily decreasing over the past five years, indicating a declining trend in the company's reliance on debt to finance its operations. The ratio decreased from 1.74 in 2019 to 1.33 in 2023. This reduction in financial leverage suggests that Saia Inc. has been able to strengthen its financial position by lowering its debt levels relative to its equity.

A lower financial leverage ratio generally indicates a lower level of financial risk for the company, as it implies a reduced dependency on debt financing, which can lead to lower interest payments and improved financial stability. However, it is important to note that a very low financial leverage ratio may also signal underutilization of debt as a source of capital, which could potentially limit the company's growth opportunities.

Overall, the decreasing trend in Saia Inc.'s financial leverage ratio suggests a positive development in the company's capital structure and financial health over the past five years.