Shutterstock (SSTK)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	1,036,020	881,184	851,710	729,644	630,512
Total stockholders’ equity	US$ in thousands	527,094	447,482	468,482	421,925	328,145
Financial leverage ratio		1.97	1.97	1.82	1.73	1.92

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,036,020K ÷ $527,094K
= 1.97

The financial leverage ratio of Shutterstock Inc has been relatively stable over the past five years, with values ranging from 1.73 to 1.97. This ratio indicates that the company has been employing a moderate level of financial leverage to fund its operations and growth. A ratio above 1 implies that the company relies on debt financing to support its assets, which can magnify returns but also increase financial risk. Overall, the consistent ratio suggests that Shutterstock Inc has maintained a balanced approach to capital structure management over the years.