Adient PLC (ADNT)
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 | 9,297,000 | 9,424,000 | 9,482,000 | 9,479,000 | 9,273,000 | 9,158,000 | 9,315,000 | 9,854,000 | 10,719,000 | 10,778,000 | 9,804,000 | 9,975,000 | 10,544,000 | 10,261,000 | 9,619,000 | 10,646,000 | 10,364,000 | 10,342,000 | 10,574,000 | 10,574,000 |
| Total stockholders’ equity | US$ in thousands | 2,285,000 | 2,228,000 | 2,174,000 | 2,197,000 | 2,192,000 | 2,073,000 | 2,123,000 | 2,285,000 | 2,344,000 | 2,376,000 | 1,467,000 | 1,489,000 | 1,452,000 | 1,213,000 | 1,250,000 | 1,541,000 | 1,743,000 | 1,848,000 | 1,919,000 | 2,257,000 |
| Financial leverage ratio | 4.07 | 4.23 | 4.36 | 4.31 | 4.23 | 4.42 | 4.39 | 4.31 | 4.57 | 4.54 | 6.68 | 6.70 | 7.26 | 8.46 | 7.70 | 6.91 | 5.95 | 5.60 | 5.51 | 4.68 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,297,000K ÷ $2,285,000K
= 4.07
The financial leverage ratio of Adient plc has shown some fluctuations over the past several quarters. The ratio decreased from 4.42 in Q4 2022 to 4.07 in Q1 2024, indicating a reduction in the company's reliance on debt to finance its operations and investments.
Although there have been some fluctuations in the ratio, it has generally remained above 4. This suggests that Adient plc has a high level of financial leverage, with a significant portion of its assets financed by debt rather than equity. A high financial leverage ratio can indicate increased financial risk, as the company may struggle to meet its debt obligations in challenging economic conditions.
Overall, monitoring Adient plc's financial leverage ratio can provide valuable insights into the company's capital structure and its ability to manage its debt effectively. It will be important for the company to carefully balance its use of debt to maintain a healthy financial position and mitigate risks associated with high leverage levels.
Peer comparison
Dec 31, 2023