Olympic Steel Inc (ZEUS)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 984,835 | 891,627 | 1,023,570 | 1,023,570 | 649,555 |
| Total stockholders’ equity | US$ in thousands | 555,478 | 515,968 | 424,439 | 424,439 | 308,352 |
| Financial leverage ratio | 1.77 | 1.73 | 2.41 | 2.41 | 2.11 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $984,835K ÷ $555,478K
= 1.77
The financial leverage ratio of Olympic Steel Inc. has fluctuated over the past five years, indicating changes in the company's capital structure. The ratio has ranged from 1.73 to 2.41 during this period.
In 2023, the financial leverage ratio was 1.77, reflecting a moderate level of financial leverage compared to the previous year. This suggests that for every dollar of equity, the company had $1.77 of total debt.
Comparing it with 2022 where the ratio was 1.73, there was a slight increase in financial leverage in 2023. However, it is important to note that the ratio was significantly lower than the peak ratio of 2.41 observed in 2021.
The significant decrease in the financial leverage ratio from 2021 to 2022 indicates a reduction in the company's reliance on debt financing, possibly due to debt repayment or equity infusion. Despite the slight increase in 2023, the company appears to have maintained a relatively stable level of financial leverage compared to the higher ratios seen in 2021 and 2020.
Overall, Olympic Steel Inc. has shown varying levels of financial leverage in recent years, reflecting changes in its capital structure and debt management strategies. It is essential for investors and stakeholders to monitor these ratios to assess the company's risk and solvency.
Peer comparison
Dec 31, 2023