EchoStar Corporation (SATS)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 60,938,700 | 57,108,900 | 6,199,000 | 6,045,200 | 7,073,350 |
| Total stockholders’ equity | US$ in thousands | 20,191,400 | 19,880,200 | 3,502,620 | 3,353,830 | 3,542,330 |
| Financial leverage ratio | 3.02 | 2.87 | 1.77 | 1.80 | 2.00 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $60,938,700K ÷ $20,191,400K
= 3.02
The financial leverage ratio of EchoStar Corporation has shown some fluctuations over the past five years. As of December 31, 2020, the ratio was 2.00, indicating that the company had twice as much debt as equity in its capital structure. This ratio decreased to 1.80 by December 31, 2021, suggesting a slight improvement in the company's leverage position.
Subsequently, there was a further decline in the financial leverage ratio to 1.77 by December 31, 2022, indicating a continued decrease in the proportion of debt relative to equity. However, there was a significant increase in the ratio to 2.87 by December 31, 2023, which may raise concerns about the company's increasing leverage and potential financial risk.
By December 31, 2024, the financial leverage ratio had risen even higher to 3.02, reaching a level that indicates the company has taken on more debt relative to its equity, signaling potential financial vulnerability. Overall, the trend in EchoStar Corporation's financial leverage ratio shows variability, with periods of improvement followed by significant increases in leverage, suggesting the need for careful monitoring of the company's debt levels and financial risk.
Peer comparison
Dec 31, 2024