Barnes Group Inc (B)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,308,010 | 2,413,700 | 2,576,800 | 2,676,200 | 2,738,300 |
| Total stockholders’ equity | US$ in thousands | 1,362,260 | 1,346,330 | 1,428,770 | 1,382,680 | 1,270,530 |
| Financial leverage ratio | 2.43 | 1.79 | 1.80 | 1.94 | 2.16 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,308,010K ÷ $1,362,260K
= 2.43
The financial leverage ratio for Barnes Group Inc. has fluctuated over the past five years. At the end of 2023, the ratio stood at 2.43, indicating an increase from the previous year. This suggests that the company relies more on debt financing compared to equity, which may signal higher financial risk. Conversely, in 2022 and 2021, the financial leverage ratio was relatively stable at around 1.79 and 1.80, respectively, reflecting a more balanced capital structure.
However, there was a noticeable increase in leverage at the end of 2020, with the ratio reaching 1.94, and a further rise in 2019 to 2.16. These higher ratios could imply that Barnes Group Inc. has been using more debt to fund its operations or expansion efforts during those years, potentially elevating the company's financial risk profile.
Overall, the trend in Barnes Group Inc.'s financial leverage ratio indicates fluctuations in the company's capital structure and debt levels over the years, which may have implications for its financial stability and risk management strategies.
Peer comparison
Dec 31, 2023