Sterling Construction Company Inc (STRL)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,016,770 | 1,777,180 | 1,441,620 | 1,234,770 | 952,694 |
| Total stockholders’ equity | US$ in thousands | 808,081 | 618,913 | 474,599 | 358,767 | 267,270 |
| Financial leverage ratio | 2.50 | 2.87 | 3.04 | 3.44 | 3.56 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,016,770K ÷ $808,081K
= 2.50
The financial leverage ratio of Sterling Construction Company Inc. demonstrates a consistent declining trend over the analyzed period from December 31, 2020, to December 31, 2024. Specifically, the ratio decreased from 3.56 in 2020 to 2.87 in 2023, reaching 2.50 in 2024. This progressive reduction suggests that the company has been gradually decreasing its reliance on debt financing relative to its equity. Such a decline may indicate a strategic shift toward deleveraging, enhanced balance sheet stability, or a cautious approach to leveraging amid changing market or operational conditions. Overall, the downward trend in the financial leverage ratio reflects an increased emphasis on financial prudence and a potential effort to mitigate financial risk exposure over the observed period.
Peer comparison
Dec 31, 2024