Olympic Steel Inc (ZEUS)
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 | 984,835 | 992,806 | 1,013,980 | 1,026,790 | 891,627 | 1,036,980 | 1,086,120 | 1,043,700 | 1,023,570 | 1,043,700 | 887,689 | 738,359 | 1,023,570 | 619,303 | 643,135 | 677,967 | 649,555 | 698,743 | 724,405 | 799,362 |
| Total stockholders’ equity | US$ in thousands | 555,478 | 549,321 | 538,463 | 524,551 | 515,968 | 512,655 | 499,559 | 462,786 | 424,439 | 512,655 | 353,820 | 323,775 | 424,439 | 298,835 | 299,938 | 306,392 | 308,352 | 308,648 | 308,463 | 309,200 |
| Financial leverage ratio | 1.77 | 1.81 | 1.88 | 1.96 | 1.73 | 2.02 | 2.17 | 2.26 | 2.41 | 2.04 | 2.51 | 2.28 | 2.41 | 2.07 | 2.14 | 2.21 | 2.11 | 2.26 | 2.35 | 2.59 |
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 shown fluctuations over the past eight quarters, ranging from 1.73 to 2.26. The trend indicates a general increase in leverage over time, peaking in Q1 2022 and then gradually declining.
A financial leverage ratio above 1 signifies that the company is relying more on debt to finance its operations and investments. Therefore, a higher ratio suggests higher financial risk as the company has a greater burden of debt to manage.
The peak in Q1 2022, with a ratio of 2.26, may point to a period of heightened financial risk for the company, potentially due to increased borrowing or declining equity. However, the subsequent decrease in the ratio indicates a move towards a more balanced capital structure.
It is important for stakeholders to closely monitor the financial leverage ratio of Olympic Steel Inc. to assess its ability to meet debt obligations and manage financial risk effectively.
Peer comparison
Dec 31, 2023