Allegheny Technologies Incorporated (ATI)
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 | 5,230,600 | 5,065,800 | 4,921,400 | 4,782,100 | 4,985,100 | 4,731,100 | 4,434,700 | 4,287,300 | 4,445,600 | 4,287,800 | 4,229,400 | 4,236,100 | 4,285,200 | 4,626,500 | 3,974,000 | 4,068,500 | 4,034,900 | 5,063,900 | 5,169,400 | 5,807,100 |
| Total stockholders’ equity | US$ in thousands | 1,850,400 | 1,791,400 | 1,355,200 | 1,263,600 | 1,373,000 | 1,238,900 | 1,194,000 | 1,096,500 | 1,045,900 | 813,500 | 762,900 | 658,700 | 685,600 | 541,400 | 473,000 | 482,900 | 521,100 | 1,733,700 | 1,735,300 | 2,087,800 |
| Financial leverage ratio | 2.83 | 2.83 | 3.63 | 3.78 | 3.63 | 3.82 | 3.71 | 3.91 | 4.25 | 5.27 | 5.54 | 6.43 | 6.25 | 8.55 | 8.40 | 8.43 | 7.74 | 2.92 | 2.98 | 2.78 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,230,600K ÷ $1,850,400K
= 2.83
The financial leverage ratio of Allegheny Technologies Incorporated has shown fluctuations over the past few years. The ratio, which compares the company's total debt to its equity, indicates how much debt the company is using to finance its operations.
From March 2020 to December 2020, the financial leverage ratio increased significantly from 2.78 to 7.74, indicating a substantial increase in debt relative to equity during this period. This high ratio may raise concerns about the company's financial stability and risk profile.
Subsequently, from March 2021 to December 2024, the financial leverage ratio gradually decreased from 8.43 to 2.83. This downward trend suggests that Allegheny Technologies Incorporated has been reducing its reliance on debt to fund its operations and has been strengthening its equity position.
Overall, the decreasing trend in the financial leverage ratio indicates a positive development for the company as it implies a more conservative capital structure and lower financial risk. It is essential for investors and stakeholders to monitor this ratio to assess the company's risk exposure and financial health.