Advanced Energy Industries Inc (AEIS)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,556,760 | 1,992,170 | 1,817,340 | 1,647,660 | 1,532,410 |
| Total stockholders’ equity | US$ in thousands | 1,144,180 | 1,066,270 | 870,851 | 814,739 | 676,714 |
| Financial leverage ratio | 2.23 | 1.87 | 2.09 | 2.02 | 2.26 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,556,760K ÷ $1,144,180K
= 2.23
The financial leverage ratio for Advanced Energy Industries Inc. has exhibited fluctuations over the past five years. The ratio was 2.23 in 2023, indicating an increase from the previous year. This suggests that the company's reliance on debt to finance its operations has increased, which may pose higher financial risk.
In 2022, the financial leverage ratio was 1.87, showing a decrease from the year before. This could indicate a reduction in the company's debt levels relative to its equity, potentially reflecting a healthier financial position.
The ratio was 2.09 in 2021, slightly lower than in 2023 but higher than in 2022. This suggests that the company's debt levels relative to equity fluctuated during this period.
In 2020, the financial leverage ratio stood at 2.02, indicating a moderate level of financial leverage compared to the previous year.
Finally, in 2019, the ratio was 2.26, representing the highest level of financial leverage among the years presented. This could indicate a higher reliance on debt to fund the company's operations and investments.
Overall, the analysis of Advanced Energy Industries Inc.'s financial leverage ratio indicates fluctuations in the company's capital structure over the past five years, with varying levels of reliance on debt financing. Investors and stakeholders may need to closely monitor the company's leverage levels to assess its financial health and risk profile.
Peer comparison
Dec 31, 2023