Allegion PLC (ALLE)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,487,800 | 4,311,500 | 3,991,200 | 3,051,000 | 3,069,400 |
| Total stockholders’ equity | US$ in thousands | 1,500,700 | 1,318,300 | 944,500 | 762,400 | 829,400 |
| Financial leverage ratio | 2.99 | 3.27 | 4.23 | 4.00 | 3.70 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,487,800K ÷ $1,500,700K
= 2.99
The financial leverage ratio of Allegion PLC has shown fluctuations over the past five years. The ratio increased from 3.70 in 2020 to 4.00 in 2021, indicating a higher degree of financial leverage. This trend continued in 2022 with a ratio of 4.23, suggesting that the company relied more on debt financing during that period.
However, in 2023, there was a significant decrease in the financial leverage ratio to 3.27, which may indicate a reduced reliance on debt financing or an increase in equity compared to the previous year. This downward trend continued in 2024, with the ratio falling to 2.99, signaling a further reduction in the company's financial leverage.
Overall, the fluctuation in Allegion PLC's financial leverage ratio over the years suggests varying levels of debt usage and equity contribution in the company's capital structure, which could reflect its strategic financial management decisions and risk appetite.