US Foods Holding Corp (USFD)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 13,187,000 | 12,773,000 | 12,521,000 | 12,423,000 | 11,288,000 |
| Total stockholders’ equity | US$ in thousands | 4,749,000 | 3,961,000 | 3,735,000 | 3,530,000 | 3,709,000 |
| Financial leverage ratio | 2.78 | 3.22 | 3.35 | 3.52 | 3.04 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $13,187,000K ÷ $4,749,000K
= 2.78
The financial leverage ratio of US Foods Holding Corp has been fluctuating over the past five years. The ratio decreased from 3.04 in 2019 to 2.78 in 2023, indicating a lower level of financial leverage in the most recent year. The ratio peaked at 3.52 in 2020 and has since been on a declining trend.
A financial leverage ratio above 1 indicates that the company has more debt than equity in its capital structure. US Foods Holding Corp's ratios over the five-year period have consistently been above 1, suggesting a reliance on debt financing to support its operations and growth initiatives.
The downward trend in the financial leverage ratio from 2020 to 2023 may indicate that the company is actively managing its debt levels or has improved its equity position relative to debt. It is important for stakeholders to monitor the financial leverage ratio to assess the company's ability to meet its debt obligations and the associated financial risks.
Peer comparison
Dec 31, 2023