Werner Enterprises Inc (WERN)

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	3,157,940	3,194,460	3,105,190	3,116,320	3,097,260	2,859,130	2,848,590	2,649,030	2,603,710	2,479,140	2,382,870	2,229,530	2,156,680	2,140,140	2,079,710	2,088,900	2,143,860	2,163,540	2,128,620	2,118,830
Total stockholders’ equity	US$ in thousands	1,528,340	1,512,220	1,497,070	1,470,540	1,443,640	1,386,560	1,343,870	1,341,460	1,327,550	1,306,560	1,296,580	1,227,730	1,195,040	1,180,140	1,136,390	1,102,040	1,111,010	1,064,800	1,032,340	1,275,390
Financial leverage ratio		2.07	2.11	2.07	2.12	2.15	2.06	2.12	1.97	1.96	1.90	1.84	1.82	1.80	1.81	1.83	1.90	1.93	2.03	2.06	1.66

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,157,940K ÷ $1,528,340K
= 2.07

The financial leverage ratio of Werner Enterprises, Inc. has shown some fluctuations over the past eight quarters, ranging from 1.92 to 2.09. The ratio indicates that, on average, the company has been utilizing debt to finance its operations to the extent of approximately twice the equity invested in the business. A higher financial leverage ratio suggests a higher level of debt relative to equity, which can enhance returns to shareholders when business is good, but can also pose higher risk in times of economic downturns or financial distress.

The company's financial leverage has been relatively stable over the past two years, with minor fluctuations observed. A ratio around 2 indicates that the company relies significantly on debt to finance its operations, which could lead to higher interest obligations and potentially limit the company's financial flexibility. It is important for the company to closely monitor its debt levels and ensure that it can manage its debt obligations effectively to avoid financial difficulties in the future.