Upbound Group Inc. (UPBD)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,721,430 | 2,763,620 | 2,993,330 | 1,750,980 | 1,582,800 |
| Total stockholders’ equity | US$ in thousands | 560,372 | 525,146 | 513,276 | 592,080 | 458,963 |
| Financial leverage ratio | 4.86 | 5.26 | 5.83 | 2.96 | 3.45 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,721,430K ÷ $560,372K
= 4.86
The financial leverage ratio of Upbound Group Inc. has shown variability over the past five years, ranging from 2.96 to 5.83. The ratio peaked in 2021 at 5.83 and decreased in the following years. This indicates a level of financial risk, as higher ratios suggest a higher level of debt financing relative to equity. A decreasing trend in the ratio may suggest that the company is relying less on debt to finance its operations or that equity has increased over time. However, it is important to further investigate the reasons behind these fluctuations to assess the company's financial health and risk profile accurately.
Peer comparison
Dec 31, 2023