Smith AO Corporation (AOS)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,240,000 | 3,154,200 | 3,197,600 | 3,182,200 | 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 |
| Total stockholders’ equity | US$ in thousands | 1,883,500 | 1,916,700 | 1,911,600 | 1,881,800 | 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 |
| Financial leverage ratio | 1.72 | 1.65 | 1.67 | 1.69 | 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 |
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 fluctuated over the past few years, ranging from a low of 1.65 to a high of 1.91. This ratio indicates the proportion of the company's total debt to its total equity, reflecting the firm's level of financial risk and the extent to which it relies on debt financing.
Analyzing the trend, we can observe that the financial leverage ratio decreased initially from March 31, 2020, to March 31, 2021, reaching a low of 1.68, indicating a reduction in debt relative to equity during this period. However, from March 31, 2021, to December 31, 2024, the ratio showed mixed movements, with fluctuations but generally staying within a narrow range between 1.65 and 1.91.
Overall, the financial leverage ratio of Smith AO Corporation appears to have stabilized around the range of 1.65 to 1.91 in recent years, showing a moderate level of leverage and balanced use of debt and equity financing. It is important for the company to monitor and manage this ratio effectively to ensure optimal capital structure and financial stability.
Peer comparison
Dec 31, 2024