Thryv Holdings Inc (THRY)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 783,170 | 783,170 | 1,177,880 | 1,300,500 | 1,214,980 |
| Total stockholders’ equity | US$ in thousands | 152,700 | 152,700 | 382,267 | 314,715 | 196,775 |
| Financial leverage ratio | 5.13 | 5.13 | 3.08 | 4.13 | 6.17 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $783,170K ÷ $152,700K
= 5.13
Thryv Holdings Inc's financial leverage ratio has fluctuated over the past five years, ranging from 3.08 in 2022 to 6.17 in 2020. The financial leverage ratio indicates the extent to which the company relies on debt financing to support its operations and growth. A higher financial leverage ratio suggests a higher level of debt relative to equity, which can increase financial risk but also potentially amplify returns for shareholders in favorable market conditions.
Thryv Holdings Inc's financial leverage ratio of 5.13 in 2024 and 2023 indicates a consistent high level of debt relative to equity in these years, which may raise concerns about the company's debt sustainability and financial stability. In comparison, the lower financial leverage ratio of 3.08 in 2022 and 4.13 in 2021 suggests a relatively lower reliance on debt financing during those periods.
Overall, Thryv Holdings Inc's financial leverage ratio has shown volatility, which could be indicative of varying financing strategies or responses to market conditions. It is important for stakeholders to monitor the company's financial leverage ratio over time to assess its capital structure and risk profile accurately.