Upbound Group Inc. (UPBD)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,649,660 | 2,721,430 | 2,763,620 | 2,993,330 | 1,750,980 |
| Total stockholders’ equity | US$ in thousands | 628,984 | 560,372 | 525,146 | 513,276 | 592,080 |
| Financial leverage ratio | 4.21 | 4.86 | 5.26 | 5.83 | 2.96 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,649,660K ÷ $628,984K
= 4.21
Based on the provided data, the financial leverage ratio of Upbound Group Inc. has shown some volatility over the past few years. The ratio increased from 2.96 as of December 31, 2020, to 5.83 as of December 31, 2021, indicating a significant increase in financial leverage during that period.
Subsequently, the ratio slightly decreased to 5.26 by December 31, 2022, followed by a further decline to 4.86 by December 31, 2023. This downward trend suggests that the company may have reduced its reliance on debt to finance its operations and investments compared to the previous year.
By December 31, 2024, the financial leverage ratio decreased again to 4.21. Although it is still higher than the initial ratio in 2020, the downward trend over the last two years indicates a potentially more conservative approach to leverage by the company.
Overall, fluctuations in the financial leverage ratio of Upbound Group Inc. reflect changes in the company's capital structure and debt levels over the years, which could have implications for its financial risk and stability. Further analysis would be required to better understand the factors driving these changes and evaluate their impact on the company's financial health.
Peer comparison
Dec 31, 2024