Verra Mobility Corp (VRRM)

Debt-to-capital 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
Long-term debt	US$ in thousands	1,029,110	1,030,350	1,129,690	1,140,710	1,190,040	1,204,010	1,205,170	1,206,280	1,206,800	965,362	966,066	965,945	832,941	833,624	834,317	835,507	837,686	858,189	859,133	859,768
Total stockholders’ equity	US$ in thousands	421,467	404,056	465,300	237,108	231,070	194,891	244,223	275,815	259,964	243,666	316,425	308,518	315,572	325,722	309,150	330,134	309,614	327,591	309,828	304,821
Debt-to-capital ratio		0.71	0.72	0.71	0.83	0.84	0.86	0.83	0.81	0.82	0.80	0.75	0.76	0.73	0.72	0.73	0.72	0.73	0.72	0.73	0.74

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 exhibited fluctuations over the past eight quarters. The ratio has ranged from 0.71 to 0.86 during this period.

In Q1 2023, the ratio was at its lowest point of 0.71, indicating that debt made up 71% of the capital structure. However, in Q4 2022, the ratio peaked at 0.86, suggesting that debt accounted for 86% of the company's capital.

Overall, the company's debt-to-capital ratio has shown some variability, with a general trend of decreasing from Q4 2022 to Q1 2023. This suggests a potential improvement in the company's capital structure and reduced reliance on debt financing. However, the ratio increased slightly in later quarters, indicating a fluctuating pattern.

It is important to monitor this ratio over time to assess the company's leverage and financial risk. A lower debt-to-capital ratio generally indicates a more conservative and less risky financial position, while a higher ratio may suggest higher leverage and financial risk.