Willscot Mobile Mini Holdings Corp A (WSC)
Financial leverage ratio
| Mar 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,961,680 | 6,034,910 | 6,037,220 | 6,048,770 | 6,180,330 | 6,137,920 | 6,075,480 | 5,718,500 | 5,609,750 | 5,827,650 | 5,810,260 | 5,978,810 | 5,857,770 | 5,773,600 | 5,644,180 | 5,559,710 | 5,538,880 | 5,572,200 | 5,624,850 | 3,501,540 |
| Total stockholders’ equity | US$ in thousands | 1,011,360 | 1,018,590 | 1,054,080 | 1,201,340 | 1,320,130 | 1,261,250 | 1,312,640 | 1,438,540 | 1,563,920 | 1,565,300 | 1,681,140 | 1,773,950 | 1,966,180 | 1,996,760 | 1,956,580 | 2,005,410 | 2,005,890 | 2,141,280 | 2,094,500 | 705,090 |
| Financial leverage ratio | 5.89 | 5.92 | 5.73 | 5.04 | 4.68 | 4.87 | 4.63 | 3.98 | 3.59 | 3.72 | 3.46 | 3.37 | 2.98 | 2.89 | 2.88 | 2.77 | 2.76 | 2.60 | 2.69 | 4.97 |
March 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,961,680K ÷ $1,011,360K
= 5.89
The financial leverage ratio of Willscot Mobile Mini Holdings Corp A exhibits a general upward trend over the period from June 30, 2020, to March 31, 2025. Initially, the ratio declined significantly from 4.97 in June 2020 to a low of approximately 2.60 by December 31, 2020, reflecting a reduction in financial leverage, possibly due to debt repayments or increased equity.
From early 2021 onward, the ratio stabilized around the low 2s to high 2s through most of 2021 and early 2022, indicating a period of relative financial stability and potentially balanced capital structure. Starting in mid-2022, the ratio began to increase again, reaching approximately 3.37 as of June 30, 2022, and continuing to rise through subsequent periods. By September 30, 2023, the leverage ratio approached 4.63, and it further increased to 4.87 by the end of 2023.
This upward trajectory indicates that the company has been progressively increasing its proportion of debt relative to equity, thereby amplifying its financial leverage. Such an increase could suggest a strategic shift toward higher leverage to finance growth activities or acquisitions, or it may reflect deteriorating equity positions or increased reliance on debt financing.
From March 2024 to March 2025, the ratio remains elevated, albeit with some fluctuations, maintaining levels close to or above 4.5, with a peak of 5.92 in December 2024. This sustained high leverage indicates that the company continues to operate under a significantly leveraged capital structure, which can amplify both potential returns and financial risk.
Overall, the observed trend demonstrates a shift toward increased leverage over time, with the ratio more than doubling from its lows in late 2020 to nearly six by the end of 2024, signaling a period of heightened financial leverage that carries implications for the company's risk profile and financial stability.