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