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.