Werner Enterprises Inc (WERN)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,157,940 | 3,097,260 | 2,603,710 | 2,156,680 | 2,143,860 |
| Total stockholders’ equity | US$ in thousands | 1,528,340 | 1,443,640 | 1,327,550 | 1,195,040 | 1,111,010 |
| Financial leverage ratio | 2.07 | 2.15 | 1.96 | 1.80 | 1.93 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,157,940K ÷ $1,528,340K
= 2.07
The financial leverage ratio for Werner Enterprises, Inc. has experienced fluctuations over the past five years. The ratio moved from 1.93 in 2019 to 1.80 in 2020, reflecting a decrease in leverage during that period. Subsequently, the ratio increased to 1.91 in 2021, indicating a slight rise in leverage. In 2022, the ratio rose further to 2.09 before decreasing to 2.02 in 2023.
The variations in the financial leverage ratio suggest changes in the company's capital structure and the proportion of debt used to finance its operations. A higher ratio generally indicates higher financial risk due to increased reliance on debt financing, while a lower ratio signifies a more conservative approach with less debt in the capital structure.
Overall, the trend in Werner Enterprises' financial leverage ratio indicates some fluctuations in its leverage levels over the period, possibly reflecting adjustments in its financing strategy and risk management. Monitoring this ratio can provide insights into the company's financial health and risk profile.
Peer comparison
Dec 31, 2023