TKO Group Holdings, Inc. (TKO)
Financial leverage ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 12,699,900 | 12,770,400 | 12,719,800 | 12,722,300 | 12,690,700 | 12,736,400 | 3,576,190 | 3,543,210 | 3,580,730 | 1,333,090 | 1,279,050 | 1,245,350 | 1,220,100 |
| Total stockholders’ equity | US$ in thousands | 4,091,020 | 4,044,560 | 3,991,620 | 4,034,780 | 4,108,980 | 4,164,900 | 586,924 | 561,234 | 568,916 | 471,236 | 440,832 | 401,444 | 374,660 |
| Financial leverage ratio | 3.10 | 3.16 | 3.19 | 3.15 | 3.09 | 3.06 | 6.09 | 6.31 | 6.29 | 2.83 | 2.90 | 3.10 | 3.26 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $12,699,900K ÷ $4,091,020K
= 3.10
Based on the financial data provided, the financial leverage ratio of TKO Group Holdings, Inc. has shown some fluctuations over the periods reported.
The financial leverage ratio, which measures the company's level of debt relative to its equity, was at a relatively stable level around 3 in the first half of 2022, indicating a balanced mix of debt and equity in the company's capital structure.
However, there was a significant spike in the financial leverage ratio at the end of 2022, increasing sharply to 6.29, and maintained at a high level in the following periods. This sudden increase in the ratio suggests a substantial increase in the company's debt relative to its equity, indicating a higher financial risk and potentially a more aggressive capital structure.
The financial leverage ratio declined gradually in the subsequent periods but remained above the initial levels, indicating that the company may be working to reduce its debt levels and improve its financial stability.
Overall, the trend in TKO Group Holdings, Inc.'s financial leverage ratio indicates some fluctuations and a notable increase in leverage at the end of 2022, followed by efforts to reduce debt levels in the subsequent periods. It is important for investors and stakeholders to closely monitor the company's leverage levels to assess its financial health and risk profile.
Peer comparison
Dec 31, 2024