Astec Industries Inc (ASTE)
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 | 1,059,300 | 1,074,400 | 1,010,400 | 1,008,400 | 1,014,400 | 944,600 | 949,900 | 943,400 | 905,800 | 910,700 | 902,300 | 868,300 | 846,700 | 819,655 | 793,838 | 804,920 | 800,500 | 815,669 | 848,555 | 872,305 |
| Total stockholders’ equity | US$ in thousands | 653,400 | 634,500 | 647,300 | 635,500 | 626,900 | 627,700 | 643,300 | 656,800 | 650,800 | 662,700 | 658,800 | 646,600 | 642,500 | 622,901 | 621,539 | 612,203 | 601,900 | 617,060 | 619,979 | 598,619 |
| Financial leverage ratio | 1.62 | 1.69 | 1.56 | 1.59 | 1.62 | 1.50 | 1.48 | 1.44 | 1.39 | 1.37 | 1.37 | 1.34 | 1.32 | 1.32 | 1.28 | 1.31 | 1.33 | 1.32 | 1.37 | 1.46 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,059,300K ÷ $653,400K
= 1.62
The financial leverage ratio measures the extent to which a company is using debt to finance its operations. Astec Industries Inc.'s financial leverage ratio has fluctuated over the past eight quarters, ranging from a low of 1.44 in Q1 2022 to a high of 1.69 in Q3 2023.
The increasing trend in the financial leverage ratio from Q1 2022 to Q3 2023 indicates that Astec Industries Inc. has been relying more on debt to fund its operations and growth initiatives. A higher financial leverage ratio suggests that the company has a higher level of debt relative to its equity, which can indicate increased financial risk.
However, it is important to note that a higher financial leverage ratio can also potentially lead to higher returns for shareholders when the company performs well. Therefore, investors should carefully consider the implications of increasing leverage on the company's financial health and overall risk profile.
Peer comparison
Dec 31, 2023