Agilent Technologies Inc (A)

Financial leverage ratio

Oct 31, 2024 Oct 31, 2023 Oct 31, 2022 Oct 31, 2021 Oct 31, 2020
Total assets US$ in thousands 11,846,000 10,763,000 10,532,000 10,705,000 9,627,000
Total stockholders’ equity US$ in thousands 5,898,000 5,845,000 5,305,000 5,389,000 4,873,000
Financial leverage ratio 2.01 1.84 1.99 1.99 1.98

October 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $11,846,000K ÷ $5,898,000K
= 2.01

The financial leverage ratio for Agilent Technologies Inc has fluctuated over the past five years, ranging from 1.84 to 2.01. This ratio measures the extent to which the company relies on debt to finance its operations and growth.

A financial leverage ratio above 1 indicates that the company has more debt than equity in its capital structure, suggesting increased financial risk. Agilent's ratio has generally remained above 1, indicating a reliance on debt financing to support its operations.

The increase in the financial leverage ratio from 1.84 in 2023 to 2.01 in 2024 suggests that Agilent may have taken on more debt relative to equity in the most recent year. This could indicate a shift towards a more aggressive financing strategy, potentially leveraging the business to fund growth opportunities or acquisitions.

It is important for investors and stakeholders to monitor Agilent's financial leverage ratio over time to assess the company's ability to manage its debt levels effectively and sustain its operations in the long term.


Peer comparison

Oct 31, 2024

Company name
Symbol
Financial leverage ratio
Agilent Technologies Inc
A
2.01
Cohu Inc
COHU
1.21
Itron Inc
ITRI
1.99
Teradyne Inc
TER
1.38
Veralto Corporation
VLTO
4.12