Adient PLC (ADNT)
Financial leverage ratio
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 9,351,000 | 9,095,000 | 9,278,000 | 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 |
| Total stockholders’ equity | US$ in thousands | 2,134,000 | 1,927,000 | 2,075,000 | 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 |
| Financial leverage ratio | 4.38 | 4.72 | 4.47 | 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 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,351,000K ÷ $2,134,000K
= 4.38
The financial leverage ratio of Adient PLC has been fluctuating over the past few quarters, ranging from a low of 4.07 to a high of 8.46. A high financial leverage ratio indicates that the company is relying more on debt to finance its operations and growth, which can potentially magnify returns in good times but also increase financial risk in unfavorable market conditions.
It is important to note that the financial leverage ratio of Adient PLC has been above 4 consistently, signaling a significant level of debt in the company's capital structure. The increase in the ratio in recent quarters may indicate a higher level of debt relative to equity, potentially increasing the company's financial risk and interest payment obligations.
Investors and stakeholders should closely monitor Adient PLC's financial leverage ratio to assess the company's ability to meet its debt obligations and manage financial risk effectively. Additionally, management should focus on maintaining a balanced capital structure to ensure financial stability and sustainability in the long term.
Peer comparison
Sep 30, 2024