Viad Corp (VVI)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	1,137,320	1,090,350	1,037,630	853,224	1,318,690
Total stockholders’ equity	US$ in thousands	43,433	14,530	6,282	95,955	467,498
Financial leverage ratio		26.19	75.04	165.18	8.89	2.82

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,137,320K ÷ $43,433K
= 26.19

The financial leverage ratio of Viad Corp. has exhibited fluctuations over the past five years. The ratio was highest in 2021 at 7.47, indicating a high level of financial leverage, which suggests that the company relied heavily on debt to finance its operations and growth. This level of leverage can increase the company's financial risk, especially in times of economic downturns or interest rate hikes.

In 2020, the financial leverage ratio decreased to 3.80, reflecting a lower level of leverage compared to the previous year. This reduction could indicate a more conservative approach to capital structure or a deleveraging strategy to strengthen the company's financial position.

The financial leverage ratio further decreased in 2019 to 2.82, signaling a lower reliance on debt financing compared to the previous year. A lower financial leverage ratio generally indicates a lower financial risk and a stronger balance sheet.

It is essential for investors and stakeholders to closely monitor Viad Corp.'s financial leverage ratio to assess the company's ability to manage its debt levels effectively and sustain its financial health in the long run.