Astec Industries Inc (ASTE)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,043,600 | 1,059,300 | 1,014,400 | 911,300 | 848,200 |
| Total stockholders’ equity | US$ in thousands | 637,600 | 653,400 | 626,900 | 654,800 | 643,000 |
| Financial leverage ratio | 1.64 | 1.62 | 1.62 | 1.39 | 1.32 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,043,600K ÷ $637,600K
= 1.64
The financial leverage ratio for Astec Industries Inc has shown a gradual increase over the years, from 1.32 in December 31, 2020, to 1.64 in December 31, 2024. This indicates that the company's reliance on debt to finance its operations has been increasing. A higher financial leverage ratio implies higher financial risk, as the company has more debt in its capital structure compared to equity. Astec Industries Inc needs to carefully manage this increasing leverage to ensure it remains within manageable levels and does not impact its financial stability and ability to meet its debt obligations.
Peer comparison
Dec 31, 2024