Werner Enterprises Inc (WERN)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,052,240 | 3,157,940 | 3,097,260 | 2,589,920 | 2,156,680 |
| Total stockholders’ equity | US$ in thousands | 1,455,930 | 1,528,340 | 1,443,640 | 1,327,550 | 1,195,040 |
| Financial leverage ratio | 2.10 | 2.07 | 2.15 | 1.95 | 1.80 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,052,240K ÷ $1,455,930K
= 2.10
The financial leverage ratio of Werner Enterprises Inc has shown an increasing trend over the past five years, from 1.80 in December 31, 2020 to 2.10 in December 31, 2024. This indicates that the company has been relying more on debt to finance its operations and investments over this period. While a higher leverage ratio can amplify returns during favorable economic conditions, it also exposes the company to increased financial risk during economic downturns or adverse business conditions. It would be crucial for stakeholders to closely monitor Werner Enterprises' ability to manage its debt levels effectively and sustain its financial health in the long term.
Peer comparison
Dec 31, 2024