BWX Technologies Inc (BWXT)
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 | 2,869,920 | 2,947,460 | 2,840,630 | 2,788,010 | 2,747,060 | 2,776,840 | 2,740,570 | 2,718,910 | 2,618,940 | 2,672,060 | 2,705,520 | 2,569,110 | 2,501,380 | 2,489,710 | 2,566,400 | 2,351,910 | 2,293,500 | 2,124,310 | 1,971,360 | 1,966,600 |
| Total stockholders’ equity | US$ in thousands | 1,080,680 | 1,058,750 | 998,488 | 946,222 | 933,351 | 872,036 | 841,659 | 788,129 | 748,310 | 712,714 | 704,286 | 659,889 | 637,175 | 578,315 | 708,997 | 656,238 | 617,766 | 550,186 | 481,517 | 429,512 |
| Financial leverage ratio | 2.66 | 2.78 | 2.84 | 2.95 | 2.94 | 3.18 | 3.26 | 3.45 | 3.50 | 3.75 | 3.84 | 3.89 | 3.93 | 4.31 | 3.62 | 3.58 | 3.71 | 3.86 | 4.09 | 4.58 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,869,920K ÷ $1,080,680K
= 2.66
The financial leverage ratio of BWX Technologies Inc has exhibited a downward trend over the analyzed period from Q1 2020 to Q4 2024, indicating an improvement in the company's financial leverage position. The ratio started at 4.58 in March 2020 and gradually decreased to 2.66 by December 2024.
A high financial leverage ratio suggests that a company is relying more on debt to finance its operations and growth, which can increase financial risk. Conversely, a lower ratio indicates a lower reliance on debt financing, which can be seen as a positive indicator of financial stability and strength.
The decreasing trend in BWX Technologies Inc's financial leverage ratio implies that the company is effectively managing its debt levels, likely by paying off debt or by increasing equity financing. This trend can enhance the company's financial flexibility, reduce interest expense, and improve overall financial health. However, it is essential for the company to strike a balance between debt and equity financing to support sustainable growth and profitability in the long term.
Peer comparison
Dec 31, 2024