Advanced Energy Industries Inc (AEIS)
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 | 2,556,760 | 2,493,690 | 1,949,910 | 2,008,700 | 1,992,170 | 1,974,060 | 1,878,070 | 1,832,360 | 1,817,340 | 1,832,060 | 1,776,230 | 1,699,250 | 1,647,660 | 1,642,520 | 1,594,250 | 1,522,550 | 1,532,410 | 1,595,420 | 865,768 | 856,950 |
| Total stockholders’ equity | US$ in thousands | 1,144,180 | 1,100,870 | 1,125,280 | 1,095,910 | 1,066,270 | 989,287 | 924,228 | 900,688 | 870,851 | 841,120 | 875,941 | 845,641 | 814,739 | 768,152 | 717,813 | 685,397 | 676,714 | 659,627 | 655,518 | 621,624 |
| Financial leverage ratio | 2.23 | 2.27 | 1.73 | 1.83 | 1.87 | 2.00 | 2.03 | 2.03 | 2.09 | 2.18 | 2.03 | 2.01 | 2.02 | 2.14 | 2.22 | 2.22 | 2.26 | 2.42 | 1.32 | 1.38 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,556,760K ÷ $1,144,180K
= 2.23
The financial leverage ratio of Advanced Energy Industries Inc. has exhibited fluctuations over the quarters. The ratio stood at 2.23 in Q4 2023, representing a decrease from the previous quarter's ratio of 2.27. This indicates that the company's reliance on debt to finance its operations decreased slightly during this period.
Comparing the current ratio to historical trends, it is lower than Q3 2022 where it was at its highest at 2.03. This suggests that the company's debt level in Q4 2023 is higher than in the same period a year ago but lower than some previous quarters.
The trend in the financial leverage ratio over the past quarters might indicate varying strategies employed by Advanced Energy Industries Inc. in terms of utilizing debt to fund its operations or investments. It is important for stakeholders to closely monitor this ratio to understand the company's capital structure and risk profile.
Peer comparison
Dec 31, 2023