Upbound Group Inc. (UPBD)
Financial leverage ratio
| 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 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,721,430 | 2,626,080 | 2,585,920 | 2,741,120 | 2,763,620 | 2,768,600 | 2,767,130 | 2,777,120 | 2,993,330 | 3,053,670 | 3,035,300 | 3,006,960 | 1,750,980 | 1,667,560 | 1,576,630 | 1,607,060 | 1,582,800 | 1,497,930 | 1,744,210 | 1,681,420 |
| Total stockholders’ equity | US$ in thousands | 560,372 | 597,245 | 625,593 | 670,342 | 525,146 | 548,163 | 558,834 | 523,058 | 513,276 | 854,079 | 825,164 | 742,187 | 592,080 | 542,337 | 486,576 | 476,023 | 458,963 | 431,740 | 391,890 | 294,252 |
| Financial leverage ratio | 4.86 | 4.40 | 4.13 | 4.09 | 5.26 | 5.05 | 4.95 | 5.31 | 5.83 | 3.58 | 3.68 | 4.05 | 2.96 | 3.07 | 3.24 | 3.38 | 3.45 | 3.47 | 4.45 | 5.71 |
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 been fluctuating over the past five years, ranging from 2.96 to 5.83. This ratio indicates the extent to which the company relies on debt financing to support its operations and growth.
A higher financial leverage ratio suggests that the company carries a higher proportion of debt relative to equity in its capital structure. This can amplify returns on equity when business is booming, but it also increases the risk of financial distress when economic conditions deteriorate.
A downward trend in the financial leverage ratio from 2019 to 2021 indicates a reduction in the company's reliance on debt financing during this period, possibly due to a focus on deleveraging or accessing alternative sources of funding.
However, the ratio spiked in 2022 and continued to be elevated in 2023, which could signal a shift towards more debt-intensive financing strategies. It is essential for investors and stakeholders to monitor this trend closely, as a sustained high financial leverage ratio may indicate increasing financial risk for Upbound Group Inc. and impact its long-term financial stability and flexibility.
Peer comparison
Dec 31, 2023