Autoliv Inc (ALV)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 7,804,000 | 8,332,000 | 7,717,000 | 7,537,000 | 8,156,800 |
| Total stockholders’ equity | US$ in thousands | 2,276,000 | 2,557,000 | 2,613,000 | 2,633,000 | 2,408,900 |
| Financial leverage ratio | 3.43 | 3.26 | 2.95 | 2.86 | 3.39 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,804,000K ÷ $2,276,000K
= 3.43
The financial leverage ratio of Autoliv Inc has shown fluctuations over the years. It stood at 3.39 as of December 31, 2020, decreased to 2.86 by December 31, 2021, rose slightly to 2.95 by December 31, 2022, increased further to 3.26 by December 31, 2023, and climbed to 3.43 by December 31, 2024. These fluctuations indicate changes in the company's debt-to-equity structure and its ability to meet financial obligations. Generally, a higher financial leverage ratio implies higher financial risk due to increased reliance on debt financing. Autoliv Inc's financial leverage ratio trend suggests varying levels of leverage over the years, which may require close monitoring to ensure financial stability and optimal capital structure management.
Peer comparison
Dec 31, 2024