Balchem Corporation (BCPC)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,575,370 | 1,596,940 | 1,574,970 | 1,588,700 | 1,625,140 | 1,603,480 | 1,619,230 | 1,628,760 | 1,624,510 | 1,633,010 | 1,606,670 | 1,194,910 | 1,199,320 | 1,179,350 | 1,173,610 | 1,169,220 | 1,165,840 | 1,161,340 | 1,151,260 | 1,162,110 |
| Total stockholders’ equity | US$ in thousands | 1,149,910 | 1,177,230 | 1,112,360 | 1,078,790 | 1,053,980 | 1,025,270 | 1,006,900 | 973,416 | 938,284 | 895,922 | 901,370 | 873,682 | 877,015 | 889,078 | 869,642 | 849,492 | 828,233 | 819,443 | 792,523 | 766,271 |
| Financial leverage ratio | 1.37 | 1.36 | 1.42 | 1.47 | 1.54 | 1.56 | 1.61 | 1.67 | 1.73 | 1.82 | 1.78 | 1.37 | 1.37 | 1.33 | 1.35 | 1.38 | 1.41 | 1.42 | 1.45 | 1.52 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,575,370K ÷ $1,149,910K
= 1.37
The financial leverage ratio of Balchem Corporation has been fluctuating over the periods provided. The ratio indicates the extent to which the company is utilizing debt in its capital structure.
From March 31, 2020, to June 30, 2022, we observe a decreasing trend in the financial leverage ratio, which suggests a decreasing reliance on debt financing during this period. However, starting from the financial results of the second half of 2022, we begin to see an increasing trend in the leverage ratio, indicating a potential shift towards utilizing more debt in the company's capital structure.
The financial leverage ratio peaked at 1.82 on September 30, 2022, which indicates a relatively higher level of debt compared to the other periods. This increase in leverage could potentially amplify returns on equity if the earnings generated from the borrowed funds exceed the cost of borrowing.
Subsequently, the ratio decreased to 1.36 by September 30, 2024, suggesting a reduction in the company's reliance on debt financing. Overall, the trend indicates a balanced approach in managing the capital structure, with periods of both increasing and decreasing leverage ratios throughout the provided time frame.
Peer comparison
Dec 31, 2024