American Axle & Manufacturing (AXL)
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 | 5,059,900 | 5,328,300 | 5,336,700 | 5,371,100 | 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 |
| Total stockholders’ equity | US$ in thousands | 562,800 | 616,300 | 609,600 | 621,400 | 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 |
| Financial leverage ratio | 8.99 | 8.65 | 8.75 | 8.64 | 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 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,059,900K ÷ $562,800K
= 8.99
The financial leverage ratio of American Axle & Manufacturing has shown a declining trend from 2020 to 2024, indicating an improvement in the company's financial leverage position over the period. Starting at 15.87 in March 2020, the ratio peaked at 30.86 in June 2020, suggesting a period of higher financial risk. However, the ratio gradually decreased to 8.99 by December 2024, reflecting a reduction in the company's reliance on debt to finance its operations.
A lower financial leverage ratio implies that a company is relying less on debt to fund its activities, which can be seen as a positive sign of financial health and stability. American Axle & Manufacturing's decreasing leverage ratio over the years suggests that the company has been successful in managing its debt levels and improving its overall financial structure.
Overall, the consistent decline in the financial leverage ratio of American Axle & Manufacturing indicates a positive trend towards a healthier balance between debt and equity in the company's capital structure.
Peer comparison
Dec 31, 2024