Smith AO Corporation (AOS)
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 | 3,213,900 | 3,200,100 | 3,248,800 | 3,336,300 | 3,332,300 | 3,231,900 | 3,321,400 | 3,434,900 | 3,474,400 | 3,300,000 | 3,140,200 | 3,106,800 | 3,160,700 | 2,971,100 | 2,984,200 | 2,983,000 | 3,058,000 | 3,067,900 | 3,175,600 | 3,143,500 |
| Total stockholders’ equity | US$ in thousands | 1,844,400 | 1,882,400 | 1,888,400 | 1,790,200 | 1,747,700 | 1,747,800 | 1,792,500 | 1,808,900 | 1,832,200 | 1,896,500 | 1,816,300 | 1,849,000 | 1,848,300 | 1,747,100 | 1,658,100 | 1,616,300 | 1,666,800 | 1,656,200 | 1,725,100 | 1,749,200 |
| Financial leverage ratio | 1.74 | 1.70 | 1.72 | 1.86 | 1.91 | 1.85 | 1.85 | 1.90 | 1.90 | 1.74 | 1.73 | 1.68 | 1.71 | 1.70 | 1.80 | 1.85 | 1.83 | 1.85 | 1.84 | 1.80 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,213,900K ÷ $1,844,400K
= 1.74
A.O. Smith Corp.'s financial leverage ratio has fluctuated over the past eight quarters, ranging from 1.70 to 1.91. The financial leverage ratio indicates the proportion of the company's assets financed by debt compared to equity. A higher financial leverage ratio suggests a higher level of debt relative to equity, which can increase the company's financial risk and potential for financial distress.
In the last quarter of 2023, the financial leverage ratio was 1.74, slightly higher than the previous quarter. This ratio indicates that the company's debt funding comprised 1.74 times its equity funding during this period.
Overall, A.O. Smith Corp. has maintained a relatively stable financial leverage ratio around the range of 1.70 to 1.91 over the past two years. It is important for investors and analysts to closely monitor changes in the financial leverage ratio, as significant shifts could signal changes in the company's capital structure and financial health.
Peer comparison
Dec 31, 2023