Verra Mobility Corp (VRRM)

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	1,789,980	1,756,080	1,906,160	1,710,890	1,756,270	1,718,330	1,779,860	1,824,480	1,837,060	1,481,920	1,559,190	1,497,210	1,367,320	1,371,970	1,355,120	1,374,130	1,407,430	1,375,860	1,346,450	1,365,610
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
Financial leverage ratio		4.25	4.35	4.10	7.22	7.60	8.82	7.29	6.61	7.07	6.08	4.93	4.85	4.33	4.21	4.38	4.16	4.55	4.20	4.35	4.48

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,789,980K ÷ $421,467K
= 4.25

The financial leverage ratio of Verra Mobility Corp has shown fluctuations over the past eight quarters. The ratio measures how much debt the company is using to finance its assets relative to its equity. A higher ratio indicates higher financial leverage and implies greater financial risk.

In Q1 2023, the financial leverage ratio significantly dropped to 7.22 from the previous quarter's 4.10. This suggests a decrease in the proportion of debt used by the company to finance its assets compared to equity. This could indicate either a reduction in debt levels or an increase in equity.

The trend continued in Q2 2023, with the ratio further decreasing to 4.25, which indicates a more conservative capital structure. However, in Q3 2023, the ratio slightly increased to 4.35, suggesting a slight uptick in the use of debt to finance operations compared to equity.

Looking at the previous quarters, the financial leverage ratio was relatively high, hovering around 7.60 to 8.82. These higher ratios indicate that the company has previously maintained a more leveraged position, relying more on debt to fund its operations.

Overall, the recent fluctuations in Verra Mobility Corp's financial leverage ratio demonstrate varying levels of debt usage relative to equity, highlighting potential shifts in the company's capital structure and financial risk profile. Further analysis of the company's debt management strategies and financial health would provide additional insights into these changes.