Autoliv Inc (ALV)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 8,332,000 | 7,717,000 | 7,537,000 | 8,157,000 | 6,771,200 |
| Total stockholders’ equity | US$ in thousands | 2,557,000 | 2,613,000 | 2,633,000 | 2,409,000 | 2,109,200 |
| Financial leverage ratio | 3.26 | 2.95 | 2.86 | 3.39 | 3.21 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $8,332,000K ÷ $2,557,000K
= 3.26
The financial leverage ratio of Autoliv Inc. has fluctuated over the past five years. In 2023, the ratio increased to 3.26 from 2.95 in 2022, indicating a higher level of financial leverage. This suggests that the company has increased its reliance on debt financing compared to the previous year. In 2021, the ratio was 2.86, showing a slightly lower level of leverage relative to the preceding year. The ratio spiked in 2020 to 3.39, indicating a significant increase in financial leverage compared to 2019 when the ratio was 3.21.
Overall, the trend in Autoliv Inc.'s financial leverage ratio has been variable, with fluctuations in the company's debt-to-equity structure. It is important for stakeholders to monitor these changes closely as high levels of financial leverage can increase the company's risk profile and impact its financial stability and solvency.
Peer comparison
Dec 31, 2023