Alamo Group Inc (ALG)
Financial leverage ratio
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,450,280 | 1,481,340 | 1,505,970 | 1,519,420 | 1,409,390 | 1,455,510 | 1,457,760 | 1,429,210 | 1,308,510 | 1,327,790 | 1,332,380 | 1,338,020 | 1,205,740 | 1,217,780 | 1,208,830 | 1,206,150 | 1,109,330 | 1,173,460 | 1,189,690 | 1,249,880 |
| Total stockholders’ equity | US$ in thousands | 1,018,250 | 1,017,720 | 979,716 | 956,556 | 932,763 | 887,734 | 865,942 | 822,348 | 785,360 | 737,031 | 736,442 | 727,180 | 705,663 | 691,662 | 671,881 | 641,881 | 625,643 | 605,213 | 577,151 | 560,409 |
| Financial leverage ratio | 1.42 | 1.46 | 1.54 | 1.59 | 1.51 | 1.64 | 1.68 | 1.74 | 1.67 | 1.80 | 1.81 | 1.84 | 1.71 | 1.76 | 1.80 | 1.88 | 1.77 | 1.94 | 2.06 | 2.23 |
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 gradually decreasing over the past five years. From a ratio of 2.23 as of March 31, 2020, the ratio decreased to 1.42 as of December 31, 2024. This indicates that the company has reduced its reliance on debt to finance its operations and investments over the period. A lower financial leverage ratio generally indicates a stronger financial position and lower risk of financial distress, as the company has less debt relative to its equity. Overall, the trend of decreasing financial leverage ratio suggests that Alamo Group Inc has been effectively managing its debt levels and maintaining a healthier balance between debt and equity in its capital structure.
Peer comparison
Dec 31, 2024