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.