Alamo Group Inc (ALG)
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 | 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 | 1,121,860 | 1,173,460 | 1,189,690 | 1,249,880 | 1,212,760 | 856,393 | 866,579 | 852,253 |
| Total stockholders’ equity | US$ in thousands | 932,763 | 887,734 | 865,942 | 822,348 | 785,360 | 737,031 | 736,442 | 727,180 | 705,663 | 691,662 | 681,241 | 651,241 | 635,003 | 605,213 | 577,151 | 560,409 | 577,943 | 551,052 | 542,832 | 521,484 |
| Financial leverage ratio | 1.51 | 1.64 | 1.68 | 1.74 | 1.67 | 1.80 | 1.81 | 1.84 | 1.71 | 1.76 | 1.77 | 1.85 | 1.77 | 1.94 | 2.06 | 2.23 | 2.10 | 1.55 | 1.60 | 1.63 |
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 several quarters, starting at 1.84 in Q1 2022 and dropping to 1.51 in Q4 2023. This indicates that the company has been relying less on debt to finance its operations compared to previous periods. A lower financial leverage ratio typically suggests lower financial risk and increased stability, as the company has less debt to repay in relation to its assets. It also implies that the company has a higher equity cushion to absorb potential losses. However, a decreasing trend in the financial leverage ratio could also indicate that the company may be missing out on opportunities for growth that could be funded through debt. Overall, Alamo Group Inc.'s declining financial leverage ratio suggests a conservative approach to capital structure and a focus on maintaining a healthy balance between debt and equity.
Peer comparison
Dec 31, 2023