EchoStar Corporation (SATS)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 57,108,900 | 58,748,300 | 6,045,200 | 7,073,350 | 7,154,300 |
| Total stockholders’ equity | US$ in thousands | 19,880,200 | 21,487,600 | 3,353,830 | 3,542,330 | 3,669,800 |
| Financial leverage ratio | 2.87 | 2.73 | 1.80 | 2.00 | 1.95 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $57,108,900K ÷ $19,880,200K
= 2.87
The financial leverage ratio of EchoStar Corporation has shown an increasing trend over the past five years, reflecting the company's increasing reliance on debt to finance its operations and investments.
As of December 31, 2023, the financial leverage ratio stands at 2.87, which indicates that the company's total debt represents 2.87 times its equity. This signifies a higher level of financial risk compared to previous years.
The financial leverage ratio was at its lowest in December 31, 2021, at 1.80, indicating a lower proportion of debt in the company's capital structure. However, since then, the ratio has been steadily increasing, reaching its highest level in 2023.
The upward trend in the financial leverage ratio suggests that EchoStar has been taking on more debt relative to its equity, which could potentially lead to higher interest payments and financial risk. It's essential for investors and stakeholders to monitor this trend to assess the company's ability to manage its debt levels effectively and sustain its financial health in the long run.
Peer comparison
Dec 31, 2023