Amphenol Corporation (APH)
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 | 16,526,400 | 15,759,000 | 15,237,900 | 15,381,500 | 15,326,200 | 15,097,900 | 14,986,100 | 14,873,600 | 14,678,400 | 14,926,100 | 14,559,100 | 13,133,500 | 12,327,300 | 11,753,900 | 11,203,900 | 12,077,700 | 10,815,500 | 10,683,600 | 10,634,000 | 10,208,100 |
| Total stockholders’ equity | US$ in thousands | 8,346,500 | 7,856,800 | 7,513,700 | 7,308,100 | 7,015,600 | 6,570,900 | 6,464,300 | 6,426,100 | 6,302,000 | 5,945,900 | 5,715,500 | 5,461,000 | 5,384,900 | 5,040,200 | 4,738,600 | 4,385,800 | 4,530,300 | 4,155,300 | 4,148,300 | 4,123,100 |
| Financial leverage ratio | 1.98 | 2.01 | 2.03 | 2.10 | 2.18 | 2.30 | 2.32 | 2.31 | 2.33 | 2.51 | 2.55 | 2.40 | 2.29 | 2.33 | 2.36 | 2.75 | 2.39 | 2.57 | 2.56 | 2.48 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $16,526,400K ÷ $8,346,500K
= 1.98
The financial leverage ratio of Amphenol Corp. has been showing a slightly decreasing trend over the past eight quarters, with a gradual decline from 2.32 in Q2 2022 to 1.98 in Q4 2023. This indicates that the company has been reducing its reliance on debt to finance its operations and investments. A lower financial leverage ratio suggests a stronger equity position relative to debt, which can potentially lower financial risk and increase financial stability. However, it's important to note that a financial leverage ratio of less than 1 would indicate negative leverage, which might not always be favorable for companies aiming for growth or expansion through debt financing. Overall, the decreasing trend in Amphenol Corp.'s financial leverage ratio demonstrates a prudent approach to managing its capital structure.