Sterling Construction Company Inc (STRL)
Financial leverage ratio
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,034,540 | 2,016,770 | 2,023,580 | 1,964,550 | 1,817,500 | 1,777,180 | 1,723,800 | 1,567,360 | 1,431,130 | 1,441,620 | 1,503,330 | 1,353,530 | 1,242,730 | 1,231,000 | 1,064,320 | 1,027,190 | 947,216 | 952,694 | 1,022,510 | 1,017,510 |
| Total stockholders’ equity | US$ in thousands | 805,416 | 808,081 | 716,524 | 670,668 | 644,566 | 618,913 | 580,347 | 537,573 | 494,664 | 474,599 | 437,111 | 405,233 | 375,909 | 358,767 | 321,688 | 297,996 | 275,080 | 267,270 | 257,628 | 239,637 |
| Financial leverage ratio | 2.53 | 2.50 | 2.82 | 2.93 | 2.82 | 2.87 | 2.97 | 2.92 | 2.89 | 3.04 | 3.44 | 3.34 | 3.31 | 3.43 | 3.31 | 3.45 | 3.44 | 3.56 | 3.97 | 4.25 |
March 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,034,540K ÷ $805,416K
= 2.53
The analysis of Sterling Construction Company Inc.'s financial leverage ratio over the specified period reveals several notable trends. Initially, the ratio was relatively high at 4.25 as of June 30, 2020, indicating the company was more reliant on debt financing relative to equity. Subsequently, the ratio exhibited a consistent declining trend over the following quarters, reflecting a gradual reduction in leverage. By December 31, 2020, the ratio decreased to 3.56, and this downward trajectory continued through 2021, reaching approximately 3.43 at year-end and fluctuating marginally around this level during 2022.
From late 2022 onward, the leverage ratio experienced further decline, with the figure dropping to approximately 2.87 by the end of 2023. The trend persisted into 2024, with the ratio diminishing to around 2.50 as of December 31, 2024, before slightly increasing again to 2.53 by March 2025.
Throughout the observed period, the company’s financial leverage ratio steadily decreased, indicating a consistent reduction in reliance on debt relative to equity. This decreasing leverage suggests an effort to strengthen the company's financial position, mitigate financial risk, or improve solvency metrics. Overall, Sterling Construction Company Inc. has transitioned from a higher leverage stance towards a more conservative leverage structure, aligning with prudent financial management and potentially reflecting efforts to reduce debt levels or improve equity dominance within its capital structure.
Peer comparison
Mar 31, 2025