Alamo Group Inc (ALG)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,450,280 | 1,409,390 | 1,308,510 | 1,205,740 | 1,109,330 |
| Total stockholders’ equity | US$ in thousands | 1,018,250 | 932,763 | 785,360 | 705,663 | 625,643 |
| Financial leverage ratio | 1.42 | 1.51 | 1.67 | 1.71 | 1.77 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,450,280K ÷ $1,018,250K
= 1.42
The financial leverage ratio of Alamo Group Inc has been declining over the five-year period from 2020 to 2024. This ratio indicates that the company's reliance on debt to finance its operations has been decreasing gradually. A decreasing trend in the financial leverage ratio is generally viewed positively as it suggests improved financial stability and reduced risk associated with debt. Alamo Group Inc's financial leverage ratio decreased from 1.77 in 2020 to 1.42 in 2024, showing a consistent effort to decrease the proportion of debt in its capital structure. This trend reflects the company's ability to manage its financial obligations efficiently and potentially reduce its interest expenses over time.
Peer comparison
Dec 31, 2024