Brunswick Corporation (BC)
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 | 6,230,500 | 6,100,900 | 6,290,100 | 6,288,600 | 6,321,300 | 6,124,900 | 6,166,500 | 6,093,000 | 5,425,000 | 5,180,600 | 4,138,500 | 3,943,200 | 3,770,600 | 3,690,800 | 3,739,100 | 3,904,600 | 3,564,400 | 3,654,400 | 4,040,800 | 4,334,900 |
| Total stockholders’ equity | US$ in thousands | 2,087,400 | 2,085,800 | 2,101,400 | 2,062,500 | 2,042,300 | 2,001,000 | 2,004,600 | 1,979,900 | 1,914,200 | 1,849,700 | 1,769,500 | 1,642,600 | 1,510,000 | 1,458,200 | 1,364,400 | 1,303,700 | 1,300,900 | 1,418,200 | 1,537,300 | 1,526,900 |
| Financial leverage ratio | 2.98 | 2.92 | 2.99 | 3.05 | 3.10 | 3.06 | 3.08 | 3.08 | 2.83 | 2.80 | 2.34 | 2.40 | 2.50 | 2.53 | 2.74 | 3.00 | 2.74 | 2.58 | 2.63 | 2.84 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,230,500K ÷ $2,087,400K
= 2.98
Brunswick Corp.'s financial leverage ratio has fluctuated over the past eight quarters, ranging from 2.92 to 3.10. A higher financial leverage ratio indicates that the company relies more on debt to finance its operations and investments.
The decreasing trend observed from Q4 2022 to Q3 2023 (3.10 to 2.92) suggests that Brunswick Corp. may have been reducing its reliance on debt financing during this period. However, the ratio increased again in Q4 2023 to 2.98, indicating a possible reversal of this trend.
It is important for investors and stakeholders to monitor changes in the financial leverage ratio as it can impact the company's financial risk and stability. A high financial leverage ratio may indicate increased financial risk, particularly in times of economic uncertainty, while a low ratio may signal a more conservative financial structure.
Peer comparison
Dec 31, 2023