Ziff Davis Inc (ZD)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,704,330 | 3,471,020 | 3,533,270 | 3,770,280 | 3,665,330 |
| Total stockholders’ equity | US$ in thousands | 1,810,880 | 1,893,000 | 1,892,610 | 1,967,730 | 1,211,020 |
| Financial leverage ratio | 2.05 | 1.83 | 1.87 | 1.92 | 3.03 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,704,330K ÷ $1,810,880K
= 2.05
The financial leverage ratio of Ziff Davis Inc has shown a declining trend over the years, reducing from 3.03 in December 2020 to 1.92 in December 2021, further to 1.87 in December 2022, 1.83 in December 2023, and then slightly increasing to 2.05 in December 2024. This indicates that the company has been gradually decreasing its reliance on debt to finance its operations and investments over the period under review. A lower financial leverage ratio is generally considered favorable as it signifies a lower level of financial risk and greater financial stability for the company.