Werner Enterprises Inc (WERN)

Financial leverage ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Total assets	US$ in thousands	3,052,240	3,121,720	3,093,570	3,078,830	3,157,940	3,194,460	3,105,190	3,116,320	3,097,260	2,859,130	2,848,590	2,649,030	2,589,920	2,479,140	2,382,870	2,229,530	2,156,680	2,140,140	2,079,710	2,088,900
Total stockholders’ equity	US$ in thousands	1,455,930	1,448,560	1,455,230	1,518,000	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
Financial leverage ratio		2.10	2.16	2.13	2.03	2.07	2.11	2.07	2.12	2.15	2.06	2.12	1.97	1.95	1.90	1.84	1.82	1.80	1.81	1.83	1.90

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 a gradual increase over the years, indicating an increasing level of financial leverage being utilized by the company. The ratio stood at 1.90 as of March 31, 2020, and consistently increased to reach 2.10 as of December 31, 2024.

A financial leverage ratio of above 1 indicates that the company has more debt relative to its equity. The upward trend in the financial leverage ratio suggests that Werner Enterprises Inc has been relying more on debt financing to support its operations and growth. While debt can provide a cost-effective source of capital, high levels of leverage can also increase financial risk, particularly in times of economic downturn or rising interest rates.

Investors and creditors closely monitor the financial leverage ratio as it provides insights into the company's capital structure and financial risk. A higher financial leverage ratio implies a higher proportion of debt in the company's capital structure, which may result in increased interest payments and lower financial flexibility. It is crucial for the company to manage its debt levels prudently to ensure long-term financial stability and sustainability.