Aptiv PLC (APTV)

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	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	13,459,000	12,939,000	13,108,000	13,019,000
Total stockholders’ equity	US$ in thousands	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	3,819,000	3,565,000	3,519,000	3,418,000
Financial leverage ratio		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	3.52	3.63	3.72	3.81

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $24,427,000K ÷ $11,548,000K
= 2.12

The financial leverage ratio of Aptiv PLC has exhibited fluctuations over the past eight quarters. The ratio has ranged between 2.12 and 2.48 during this period. The trend indicates an increasing level of financial leverage from Q4 2022 to Q2 2023, peaking at 2.48 in Q4 2022. However, there has been a slight decline in the ratio in the most recent quarters, reaching 2.12 in Q4 2023.

Overall, Aptiv PLC's financial leverage ratio has been relatively high, generally above 2.0 throughout the analyzed period. A high financial leverage ratio suggests that the company relies heavily on debt financing, which can magnify returns in good times but also increases financial risk during economic downturns or periods of financial instability. Management should monitor this ratio closely to ensure a balance between leveraging opportunities and maintaining financial stability.