Balchem Corporation (BCPC)
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 | 1,597,210 | 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 | 1,155,680 | 1,096,630 | 1,098,320 | 971,888 |
| Total stockholders’ equity | US$ in thousands | 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 | 743,667 | 733,586 | 732,345 | 710,509 |
| Financial leverage ratio | 1.52 | 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 | 1.55 | 1.49 | 1.50 | 1.37 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,597,210K ÷ $1,053,980K
= 1.52
The financial leverage ratio for Balchem Corp. has been gradually increasing over the past eight quarters, indicating a rising level of debt relative to the company's equity. This trend suggests that the company has been relying more on debt financing to support its operations and investments.
The ratio stood at 1.52 in Q4 2023 and has steadily risen to 1.67 in Q1 2023. Compared to the same quarter in the previous year (Q4 2022), the financial leverage ratio has increased from 1.73 to 1.52 in Q4 2023, reflecting a deeper level of leverage.
Notably, the financial leverage ratio spiked to 1.82 in Q3 2022 before declining to 1.37 in Q1 2022. This swing may indicate fluctuating levels of debt utilization or strategic shifts in the company's capital structure during that period.
Overall, the increasing trend in Balchem Corp.'s financial leverage ratio implies a heightened level of financial risk due to higher debt levels, which could potentially impact the company's ability to meet its debt obligations in the future. Investors and stakeholders may want to monitor this trend closely to assess the company's financial health and risk profile.
Peer comparison
Dec 31, 2023