NCR Voyix Corporation (VYX)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,990,000 | 11,507,000 | 11,641,000 | 8,414,000 | 8,987,000 |
| Total stockholders’ equity | US$ in thousands | 25,000 | 1,480,000 | 1,256,000 | 1,048,000 | 1,104,000 |
| Financial leverage ratio | 199.60 | 7.78 | 9.27 | 8.03 | 8.14 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,990,000K ÷ $25,000K
= 199.60
The financial leverage ratio of NCR Voyix Corporation has exhibited significant fluctuations over the past five years. In 2023, the financial leverage ratio was notably high at 199.60, indicating a substantial level of debt utilization to finance the company's assets. This could suggest a higher risk associated with the company's capital structure due to the potential impact of debt on the company's financial stability.
In contrast, the financial leverage ratio was comparatively lower in 2022, 2021, 2020, and 2019, ranging from 7.78 to 9.27. These lower ratios suggest a more conservative approach to debt financing during these years, potentially indicating a lower level of financial risk and a more stable capital structure.
The significant increase in the financial leverage ratio in 2023 compared to previous years may raise concerns about the company's ability to manage its debt levels effectively and generate sufficient returns to cover its financial obligations. Further analysis of NCR Voyix Corporation's debt levels, profitability, and cash flow would be necessary to fully assess the implications of the high financial leverage ratio in 2023.