Smith AO Corporation (AOS)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,240,000 | 3,213,900 | 3,332,300 | 3,474,400 | 3,160,700 |
| Total stockholders’ equity | US$ in thousands | 1,883,500 | 1,844,400 | 1,747,700 | 1,832,200 | 1,848,300 |
| Financial leverage ratio | 1.72 | 1.74 | 1.91 | 1.90 | 1.71 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,240,000K ÷ $1,883,500K
= 1.72
The financial leverage ratio of Smith AO Corporation has shown a slight increase from 1.71 in 2020 to 1.90 in 2021 and further to 1.91 in 2022. This indicates that the company has been relying more on debt financing compared to equity over these years. In 2023, the ratio decreased to 1.74, suggesting a decrease in the company's reliance on debt. In the latest year, 2024, the financial leverage ratio remained relatively stable at 1.72. Overall, the company's financial leverage ratio fluctuated over the years but has generally remained within a moderate range, indicating a balanced mix of debt and equity in its capital structure.
Peer comparison
Dec 31, 2024