Alcoa Corp (AA)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 14,065,000 | 14,542,000 | 14,307,000 | 14,328,000 | 14,158,000 | 13,917,000 | 14,128,000 | 14,369,000 | 14,756,000 | 14,885,000 | 15,709,000 | 15,988,000 | 15,003,000 | 14,197,000 | 14,438,000 | 14,931,000 | 14,864,000 | 14,223,000 | 13,300,000 | 13,651,000 |
| Total stockholders’ equity | US$ in thousands | 5,159,000 | 5,250,000 | 3,899,000 | 3,994,000 | 4,251,000 | 4,509,000 | 4,842,000 | 4,690,000 | 5,076,000 | 5,371,000 | 5,666,000 | 4,579,000 | 4,638,000 | 3,878,000 | 3,769,000 | 3,248,000 | 3,287,000 | 3,395,000 | 3,705,000 | 4,275,000 |
| Financial leverage ratio | 2.73 | 2.77 | 3.67 | 3.59 | 3.33 | 3.09 | 2.92 | 3.06 | 2.91 | 2.77 | 2.77 | 3.49 | 3.23 | 3.66 | 3.83 | 4.60 | 4.52 | 4.19 | 3.59 | 3.19 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $14,065,000K ÷ $5,159,000K
= 2.73
The financial leverage ratio of Alcoa Corp has shown fluctuation over the reporting periods. The ratio started at 3.19 on March 31, 2020, increased to 4.60 by March 31, 2021, then decreased to 2.77 by June 30, 2022, and remained relatively consistent around this level until the end of 2024.
A high financial leverage ratio indicates that a company is largely financed through debt, which can increase financial risk due to interest payments and potential difficulties in meeting debt obligations. Conversely, a low ratio suggests a lower level of financial risk as the company relies less on debt financing.
During the period analyzed, Alcoa Corp experienced fluctuations in its financial leverage ratio, indicating varying levels of debt usage and financial risk. The company may have strategically adjusted its capital structure over time to optimize its financial position and capital allocation decisions. Further analysis would be needed to understand the specific factors driving these changes and their implications for the company's financial health and stability.
Peer comparison
Dec 31, 2024