Amphenol Corporation (APH)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 21,440,200 | 16,526,400 | 15,326,200 | 14,678,400 | 12,327,300 |
| Total stockholders’ equity | US$ in thousands | 9,792,000 | 8,346,500 | 7,015,600 | 6,302,000 | 5,384,900 |
| Financial leverage ratio | 2.19 | 1.98 | 2.18 | 2.33 | 2.29 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $21,440,200K ÷ $9,792,000K
= 2.19
The financial leverage ratio of Amphenol Corporation has shown some fluctuations over the years, ranging from 1.98 to 2.33. The ratio indicates that the company has been relying on debt to finance its operations and growth, with a higher ratio suggesting higher financial risk.
In 2022, the ratio decreased to 2.18, showing a slight improvement in the company's leverage position. However, in 2023, the ratio decreased further to 1.98, indicating a significant reduction in the company's reliance on debt financing. This decline may suggest that the company is managing its debt levels more effectively or has increased its equity contributions.
By 2024, the financial leverage ratio increased to 2.19, signaling a return to a higher level of debt compared to the previous year. It is important for investors and stakeholders to monitor these changes in the financial leverage ratio to assess the company's ability to meet its debt obligations and manage financial risk effectively.