Verra Mobility Corp (VRRM)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	1,029,110	1,190,040	1,206,800	832,941	837,686
Total stockholders’ equity	US$ in thousands	421,467	231,070	259,964	315,572	309,614
Debt-to-capital ratio		0.71	0.84	0.82	0.73	0.73

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,029,110K ÷ ($1,029,110K + $421,467K)
= 0.71

The debt-to-capital ratio of Verra Mobility Corp has shown some fluctuation over the past five years, ranging from 0.71 in 2023 to 0.84 in 2022. This ratio indicates the proportion of the company's capital that is financed through debt. A decreasing trend in this ratio over time suggests that the company is relying less on debt to fund its operations and investments relative to its total capital.

However, it is important to note that the ratio increased in 2022 compared to the previous year, indicating a higher level of debt relative to capital in that specific year. Overall, the trend suggests that Verra Mobility Corp has been managing its debt levels effectively, with a reasonable balance between debt and equity financing in its capital structure.