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.