Verra Mobility Corp (VRRM)

Debt-to-equity 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-equity ratio		2.44	5.15	4.64	2.64	2.71

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,029,110K ÷ $421,467K
= 2.44

The debt-to-equity ratio of Verra Mobility Corp has fluctuated over the past five years, ranging from 2.46 in 2023 to 5.25 in 2022. This ratio indicates the proportion of debt financing relative to equity financing in the company's capital structure. A higher debt-to-equity ratio suggests a higher reliance on debt to fund operations and growth, which can increase financial risk due to higher interest expenses and debt obligations.

The significant decrease in the ratio from 5.25 in 2022 to 2.46 in 2023 indicates a reduction in the company's debt relative to equity, potentially signaling improved financial stability and a stronger equity position. However, it is important to monitor this ratio over time to assess the company's ability to manage its debt levels effectively and maintain a healthy balance between debt and equity financing.