Stericycle Inc (SRCL)
Financial leverage ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,352,600 | 5,246,100 | 5,213,100 | 5,332,000 | 5,334,100 | 5,340,600 | 5,408,000 | 5,477,100 | 5,473,100 | 5,469,500 | 5,517,100 | 5,531,400 | 5,581,900 | 5,633,200 | 5,685,300 | 6,353,200 | 6,437,000 | 6,676,300 | 6,869,700 | 6,850,700 |
| Total stockholders’ equity | US$ in thousands | 2,522,500 | 2,475,600 | 2,482,200 | 2,445,400 | 2,420,200 | 2,322,400 | 2,349,900 | 2,377,500 | 2,398,700 | 2,418,500 | 2,489,800 | 2,445,200 | 2,430,100 | 2,333,600 | 2,291,600 | 2,276,200 | 2,330,900 | 2,473,700 | 2,558,000 | 2,566,600 |
| Financial leverage ratio | 2.12 | 2.12 | 2.10 | 2.18 | 2.20 | 2.30 | 2.30 | 2.30 | 2.28 | 2.26 | 2.22 | 2.26 | 2.30 | 2.41 | 2.48 | 2.79 | 2.76 | 2.70 | 2.69 | 2.67 |
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 been relatively stable over the past eight quarters, ranging from 2.10 to 2.30. This indicates that the company's reliance on debt to finance its operations and growth has remained consistent during this period. A financial leverage ratio above 1 suggests that the company has more debt than equity in its capital structure.
A ratio of 2.12 in Q4 2023 and Q3 2023 indicates that for every dollar of equity, Stericycle Inc. has $2.12 of debt. This level of financial leverage implies that the company has a moderate level of financial risk, as a higher ratio indicates higher financial leverage and potential vulnerability to economic downturns or interest rate fluctuations.
Comparing the current ratios to those in the same quarter of the previous year, there has been a slight decline in Q4 2023 from 2.20 in Q4 2022. Despite this decrease, the ratio remains relatively high, indicating continued reliance on debt financing. It is important for investors and stakeholders to monitor changes in the financial leverage ratio, as significant increases could indicate an increased risk of default or financial distress.
Peer comparison
Dec 31, 2023