Stericycle Inc (SRCL)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,352,600 | 5,334,100 | 5,473,100 | 5,581,900 | 6,437,000 |
| Total stockholders’ equity | US$ in thousands | 2,522,500 | 2,420,200 | 2,398,700 | 2,430,100 | 2,330,900 |
| Financial leverage ratio | 2.12 | 2.20 | 2.28 | 2.30 | 2.76 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,352,600K ÷ $2,522,500K
= 2.12
The financial leverage ratio of Stericycle Inc. has shown a decreasing trend over the past five years, decreasing from 2.76 in 2019 to 2.12 in 2023. This indicates that the company has been relying less on debt financing in relation to its equity over time. A lower financial leverage ratio typically signifies lower financial risk, as the company is less dependent on debt to finance its operations and growth.
A financial leverage ratio of 2.12 in 2023 suggests that for every $1 of equity, the company has $2.12 of debt. This level of leverage indicates that Stericycle Inc. is still moderately leveraged, with a substantial portion of its capital structure being financed through debt.
Overall, the decreasing trend in the financial leverage ratio of Stericycle Inc. reflects a potential shift towards a more conservative capital structure and a reduced reliance on debt to support its operations and investments.
Peer comparison
Dec 31, 2023