Aptiv PLC (APTV)
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 | 23,458,000 | 24,766,000 | 24,751,000 | 23,644,000 | 24,427,000 | 23,711,000 | 22,098,000 | 21,716,000 | 21,884,000 | 19,971,000 | 19,908,000 | 20,404,000 | 18,007,000 | 17,651,000 | 17,780,000 | 17,476,000 | 17,522,000 | 16,444,000 | 15,280,000 | 16,167,000 |
| Total stockholders’ equity | US$ in thousands | 8,796,000 | 8,882,000 | 11,467,000 | 11,120,000 | 11,548,000 | 10,778,000 | 9,232,000 | 8,983,000 | 8,809,000 | 8,195,000 | 8,099,000 | 8,396,000 | 8,347,000 | 8,294,000 | 8,322,000 | 8,077,000 | 7,905,000 | 7,363,000 | 6,942,000 | 4,971,000 |
| Financial leverage ratio | 2.67 | 2.79 | 2.16 | 2.13 | 2.12 | 2.20 | 2.39 | 2.42 | 2.48 | 2.44 | 2.46 | 2.43 | 2.16 | 2.13 | 2.14 | 2.16 | 2.22 | 2.23 | 2.20 | 3.25 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $23,458,000K ÷ $8,796,000K
= 2.67
The financial leverage ratio of Aptiv PLC shows a fluctuating trend over the analyzed period, ranging from a low of 2.13 in September 30, 2021, to a high of 2.79 in September 30, 2024. This ratio indicates the level of debt used by the company in relation to its equity. Generally, a higher financial leverage ratio implies a higher level of debt financing relative to equity, which can increase financial risk but also potentially amplify returns.
Aptiv's financial leverage ratio peaked in September 30, 2024, suggesting a potential increase in the company's debt levels compared to equity at that point in time. This could be a strategic decision to leverage debt for growth opportunities or other reasons. On the other hand, the ratio hit a low point in March 31, 2021, indicating a lower reliance on debt for financing operations during that period.
Overall, Aptiv's financial leverage ratio has shown variability over the analyzed period, which could reflect changes in the company's capital structure and financial strategy. It is important for stakeholders to monitor this ratio along with other financial metrics to assess the company's risk profile and financial health effectively.
Peer comparison
Dec 31, 2024