Axalta Coating Systems Ltd (AXTA)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 7,249,000 | 7,272,000 | 7,059,200 | 7,217,200 | 7,157,200 |
| Total stockholders’ equity | US$ in thousands | 1,912,000 | 1,727,000 | 1,453,500 | 1,492,900 | 1,433,000 |
| Financial leverage ratio | 3.79 | 4.21 | 4.86 | 4.83 | 4.99 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,249,000K ÷ $1,912,000K
= 3.79
The financial leverage ratio of Axalta Coating Systems Ltd has exhibited a declining trend over the past five years. Starting at 4.99 in December 2020, the ratio decreased to 4.83 by December 2021, and further to 4.86 by December 2022. The trend shifted notably in December 2023 as the ratio dropped to 4.21, indicating a significant decrease in the company's financial leverage. This downward trend continued as of December 2024, with the ratio standing at 3.79. The decreasing financial leverage ratio suggests that the company is relying less on debt financing and is gradually reducing its financial risk. This reduction in leverage could imply improved financial stability and potentially lower interest expenses for Axalta Coating Systems Ltd.
Peer comparison
Dec 31, 2024