Alamo Group Inc (ALG)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,409,390 | 1,308,510 | 1,205,740 | 1,121,860 | 1,212,760 |
| Total stockholders’ equity | US$ in thousands | 932,763 | 785,360 | 705,663 | 635,003 | 577,943 |
| Financial leverage ratio | 1.51 | 1.67 | 1.71 | 1.77 | 2.10 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,409,390K ÷ $932,763K
= 1.51
The financial leverage ratio of Alamo Group Inc. has shown a decreasing trend over the past five years, indicating a gradual reduction in the company's reliance on debt financing to fund its operations and growth. The ratio decreased from 2.13 in 2019 to 1.51 in 2023.
A lower financial leverage ratio suggests that the company is less leveraged and has a stronger equity position relative to its debt. This can be seen as a positive sign of financial stability and lower risk of financial distress.
However, it is important to note that comparing the financial leverage ratio to industry benchmarks and peer companies would provide a more comprehensive understanding of Alamo Group Inc.'s leverage position within the industry. Additionally, further analysis of the company's debt structure and repayment obligations would be necessary to assess its overall financial health.
Peer comparison
Dec 31, 2023