Willscot Mobile Mini Holdings Corp A (WSC)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,034,910 | 6,137,920 | 5,827,650 | 5,773,600 | 5,572,200 |
| Total stockholders’ equity | US$ in thousands | 1,018,590 | 1,261,250 | 1,565,300 | 1,996,760 | 2,141,280 |
| Financial leverage ratio | 5.92 | 4.87 | 3.72 | 2.89 | 2.60 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,034,910K ÷ $1,018,590K
= 5.92
The financial leverage ratio of Willscot Mobile Mini Holdings Corp A has exhibited a consistent upward trend over the period from December 31, 2020, to December 31, 2024. Specifically, the ratio increased from 2.60 in 2020 to 2.89 in 2021, indicating a moderate rise in the company's debt levels relative to its equity base. This upward movement accelerated notably in subsequent years, with the ratio reaching 3.72 at the end of 2022. The trend continued with a further increase to 4.87 in 2023, and culminating at 5.92 by the end of 2024.
This progressive escalation in the financial leverage ratio suggests that the company has been increasingly utilizing debt financing over time. Such a pattern may imply a strategic shift towards leveraging borrowed funds to finance growth or operations, which could amplify both potential returns and financial risk. An elevated leverage ratio in 2024 indicates that the company's debt relative to equity has grown markedly, potentially impacting its solvency profile and cost of capital.
Overall, the data underscores a significant and steady trend of increasing leverage, warranting close monitoring of the company's debt management and interest obligations, as well as assessing the impact on its financial stability and capacity to generate earnings to service higher leverage levels.