Axalta Coating Systems Ltd (AXTA)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 7,272,100 | 7,059,200 | 7,217,200 | 7,157,200 | 6,818,000 |
| Total stockholders’ equity | US$ in thousands | 1,727,300 | 1,453,500 | 1,492,900 | 1,433,000 | 1,354,200 |
| Financial leverage ratio | 4.21 | 4.86 | 4.83 | 4.99 | 5.03 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,272,100K ÷ $1,727,300K
= 4.21
The financial leverage ratio of Axalta Coating Systems Ltd has exhibited a decreasing trend from 2019 to 2023. The ratio decreased from 5.03 in 2019 to 4.21 in 2023. This indicates that the company has been gradually reducing its reliance on debt to finance its operations and investments over the years. A lower financial leverage ratio suggests that the company has a lower level of financial risk and is less exposed to potential financial distress due to debt obligations. This improving trend may imply a strengthening financial position and better debt management by Axalta Coating Systems Ltd. However, it is essential to monitor the trend further to assess the sustainability of this improvement in the company's financial leverage position.
Peer comparison
Dec 31, 2023