Brunswick Corporation (BC)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,230,500 | 6,321,300 | 5,425,000 | 3,770,600 | 3,564,400 |
| Total stockholders’ equity | US$ in thousands | 2,087,400 | 2,042,300 | 1,914,200 | 1,510,000 | 1,300,900 |
| Financial leverage ratio | 2.98 | 3.10 | 2.83 | 2.50 | 2.74 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,230,500K ÷ $2,087,400K
= 2.98
The financial leverage ratio of Brunswick Corp. has shown fluctuations over the past five years. The ratio was highest in 2022 at 3.10 and lowest in 2020 at 2.50. It indicates that the company's reliance on debt to finance its operations has varied over the years.
A financial leverage ratio of 2.98 in 2023 suggests that for every dollar of equity, the company has $2.98 of debt. This indicates a moderate level of financial leverage, which could potentially magnify returns on equity when business is good, but also increases financial risk when facing challenges.
Overall, the trend in the financial leverage ratio for Brunswick Corp. displays some volatility, with the company adjusting its debt levels over the years to manage its capital structure effectively. It is essential for the company to strike a balance between utilizing debt for growth opportunities and maintaining a sustainable level of leverage to safeguard its financial health.
Peer comparison
Dec 31, 2023