American Axle & Manufacturing (AXL)
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 | 5,356,300 | 5,475,000 | 5,507,400 | 5,452,900 | 5,469,400 | 5,679,600 | 5,768,700 | 5,725,000 | 5,635,700 | 5,642,500 | 5,844,900 | 5,936,900 | 5,916,300 | 5,942,100 | 6,055,000 | 6,186,700 | 6,644,600 | 7,316,300 | 7,547,900 | 7,615,500 |
| Total stockholders’ equity | US$ in thousands | 604,900 | 613,700 | 644,800 | 621,700 | 627,300 | 486,500 | 469,200 | 484,500 | 457,800 | 432,800 | 441,300 | 401,300 | 370,500 | 340,900 | 196,200 | 389,800 | 977,600 | 1,406,800 | 1,569,500 | 1,521,300 |
| Financial leverage ratio | 8.85 | 8.92 | 8.54 | 8.77 | 8.72 | 11.67 | 12.29 | 11.82 | 12.31 | 13.04 | 13.24 | 14.79 | 15.97 | 17.43 | 30.86 | 15.87 | 6.80 | 5.20 | 4.81 | 5.01 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,356,300K ÷ $604,900K
= 8.85
American Axle & Manufacturing Holdings Inc's financial leverage ratio has been fluctuating over the past eight quarters. The ratio ranged between 8.54 and 12.29 during this period, indicating some volatility in the company's leverage position. A financial leverage ratio above 8 suggests that the company relies more on debt financing compared to equity to support its operations and investments.
The upward trend observed in the first half of 2022, reaching a peak of 12.29 in Q2 2022, may indicate increased borrowing or decreased equity in the capital structure during that period. Subsequently, there was a gradual decline in the leverage ratio in the second half of 2022 and into 2023. However, the ratio remained relatively high compared to the industry average, which could signify higher financial risk and debt burden for the company.
Overall, the trend in American Axle & Manufacturing Holdings Inc's financial leverage ratio suggests a need for close monitoring of its debt levels and capital structure to ensure sustainable financial health and minimize potential risks associated with high leverage.
Peer comparison
Dec 31, 2023