Viad Corp (VVI)

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	1,137,320	1,200,540	1,152,770	1,104,280	1,090,350	39,646	1,141,160	1,059,550	1,037,630	1,057,560	944,476	904,655	853,224	869,092	998,464	1,247,460	1,318,690	1,286,370	1,222,180	1,044,610
Total stockholders’ equity	US$ in thousands	43,433	51,750	16,487	-4,248	14,530	617,162	-7,591	-18,169	6,282	25,608	18,751	56,502	95,955	134,848	153,772	349,295	467,498	465,037	438,909	420,403
Financial leverage ratio		26.19	23.20	69.92	—	75.04	0.06	—	—	165.18	41.30	50.37	16.01	8.89	6.44	6.49	3.57	2.82	2.77	2.78	2.48

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 shown some fluctuations over the past eight quarters. The ratio, which measures the proportion of a company's debt to its equity, indicates the extent to which the company relies on debt to finance its operations.

Viad Corp.'s financial leverage ratio ranged from a low of 6.46 in Q4 2023 to a high of 9.26 in Q1 2022. The decreasing trend from Q1 2023 to Q3 2023 suggests that the company may have been reducing its reliance on debt during that period. However, the ratio increased again in Q4 2023, which could indicate a shift back towards higher debt levels.

With a range of 6.46 to 9.26, Viad Corp.'s financial leverage ratios are relatively high, indicating a significant level of debt compared to equity. This could pose risks in terms of interest payments and financial stability, as higher leverage magnifies the impact of fluctuations in earnings on the company's financial health.

Overall, closer monitoring of Viad Corp.'s financial leverage ratio is advised to assess the company's capital structure and financial risk profile effectively. A thorough understanding of the reasons behind the fluctuations in the ratio will be essential for stakeholders to make informed decisions about the company's financial health and sustainability.