Adient PLC (ADNT)
Financial leverage ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 9,424,000 | 9,158,000 | 10,778,000 | 10,261,000 | 10,342,000 |
| Total stockholders’ equity | US$ in thousands | 2,228,000 | 2,073,000 | 2,376,000 | 1,213,000 | 1,848,000 |
| Financial leverage ratio | 4.23 | 4.42 | 4.54 | 8.46 | 5.60 |
September 30, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,424,000K ÷ $2,228,000K
= 4.23
The financial leverage ratio of Adient plc has shown a fluctuating trend over the past five years. As of September 30, 2023, the financial leverage ratio stands at 4.23, representing a decrease from the previous year's ratio of 4.42. This indicates that the company's reliance on debt has slightly reduced in the most recent period.
Comparing the current ratio to historical data, it is evident that there has been notable volatility in the financial leverage ratio. The ratio was 4.54 in September 2021, displaying a decrease from the unusually high value of 8.46 in September 2020. However, it is important to note that the ratio appears to have returned to a more stable level in the most recent period.
Overall, a declining trend in the financial leverage ratio signifies a potential improvement in the company's solvency and financial risk, as it suggests a reduced dependency on debt financing in relation to equity. However, it would be beneficial to further investigate the specific factors influencing these fluctuations to garner a more comprehensive understanding of Adient plc's financial structure and risk management strategies.
Peer comparison
Sep 30, 2023