Axalta Coating Systems Ltd (AXTA)
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 | 7,272,100 | 6,996,000 | 7,043,100 | 7,000,600 | 7,059,200 | 6,819,000 | 6,942,600 | 7,081,500 | 7,217,200 | 7,233,000 | 7,209,400 | 7,020,800 | 7,157,200 | 7,036,500 | 6,668,600 | 6,390,700 | 6,818,000 | 6,690,000 | 6,692,900 | 6,673,400 |
| Total stockholders’ equity | US$ in thousands | 1,727,300 | 1,604,100 | 1,644,200 | 1,570,100 | 1,453,500 | 1,273,300 | 1,326,200 | 1,375,400 | 1,492,900 | 1,440,800 | 1,488,300 | 1,359,400 | 1,433,000 | 1,339,700 | 1,213,100 | 1,291,000 | 1,354,200 | 1,285,700 | 1,252,500 | 1,206,200 |
| Financial leverage ratio | 4.21 | 4.36 | 4.28 | 4.46 | 4.86 | 5.36 | 5.23 | 5.15 | 4.83 | 5.02 | 4.84 | 5.16 | 4.99 | 5.25 | 5.50 | 4.95 | 5.03 | 5.20 | 5.34 | 5.53 |
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 declining trend over the last eight quarters, decreasing from 5.36 in Q3 2022 to 4.21 in Q4 2023. This indicates that the company's reliance on debt to finance its operations has decreased over this period. Despite fluctuating slightly, the ratio has generally been on a downward trajectory, which may reflect efforts to strengthen the company's balance sheet and reduce financial risk. A lower financial leverage ratio suggests that the company has a lower level of debt relative to its equity, which can enhance its financial stability and flexibility in the long run.
Peer comparison
Dec 31, 2023