Allegion PLC (ALLE)
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 | 4,311,500 | 4,183,100 | 4,163,800 | 4,124,400 | 3,991,200 | 3,943,300 | 3,653,700 | 3,007,600 | 3,051,000 | 3,116,700 | 3,060,100 | 2,947,900 | 3,069,400 | 3,027,700 | 2,833,900 | 2,757,700 | 2,967,200 | 2,865,400 | 2,849,300 | 2,800,800 |
| Total stockholders’ equity | US$ in thousands | 1,318,300 | 1,232,100 | 1,138,600 | 1,041,700 | 941,800 | 791,300 | 776,900 | 741,600 | 759,100 | 864,200 | 784,000 | 727,700 | 829,400 | 824,300 | 677,500 | 611,300 | 757,400 | 685,000 | 660,500 | 633,700 |
| Financial leverage ratio | 3.27 | 3.40 | 3.66 | 3.96 | 4.24 | 4.98 | 4.70 | 4.06 | 4.02 | 3.61 | 3.90 | 4.05 | 3.70 | 3.67 | 4.18 | 4.51 | 3.92 | 4.18 | 4.31 | 4.42 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,311,500K ÷ $1,318,300K
= 3.27
The financial leverage ratio of Allegion plc has exhibited a decreasing trend over the past eight quarters, indicating a declining reliance on debt to finance its operations and investments. The ratio stood at 3.27 in Q4 2023, compared to 3.40 in Q3 2023 and 3.66 in Q2 2023. This downward trend suggests that the company has been gradually reducing its debt levels relative to its equity.
Furthermore, the progressive decline in the financial leverage ratio from 4.24 in Q4 2022 to 3.27 in Q4 2023 reflects a strategic effort by Allegion plc to strengthen its financial position by decreasing its leverage and potentially reducing its financial risk. This may indicate improved financial stability and a lower likelihood of financial distress for the company.
Overall, the decreasing financial leverage ratio of Allegion plc over the past quarters signals a prudent approach to managing its capital structure and indicates a potential enhancement of its overall financial health and stability.