Bristow Group Inc (VTOL)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Mar 31, 2022 | Mar 31, 2021 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,937,280 | 1,812,000 | 1,824,280 | 1,992,270 | 764,515 |
| Total stockholders’ equity | US$ in thousands | 823,687 | 787,307 | 835,815 | 897,613 | 459,554 |
| Financial leverage ratio | 2.35 | 2.30 | 2.18 | 2.22 | 1.66 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,937,280K ÷ $823,687K
= 2.35
The financial leverage ratio for Bristow Group Inc has been gradually increasing over the past few years, indicating an increase in the company's reliance on debt to finance its operations and assets.
As of December 31, 2023, the financial leverage ratio stands at 2.35, indicating that for every dollar of equity, the company has $2.35 of debt. This suggests a relatively high level of financial risk as higher leverage magnifies the impact of financial downturns on the company's financial stability.
The increase in the financial leverage ratio from 1.66 in December 2019 to 2.35 in December 2023 may signify that Bristow Group Inc has been taking on more debt over the years, potentially to fund expansion, acquisitions, or other strategic initiatives. While leverage can amplify returns in good times, it also exposes the company to increased financial risk, especially in economic downturns or periods of high interest rates.
It would be important for stakeholders and investors to closely monitor the company's financial leverage ratio and assess the company's ability to manage its debt levels effectively to ensure long-term financial sustainability and stability.