Church & Dwight Company Inc (CHD)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 8,569,200 | 8,345,600 | 7,996,500 | 7,414,500 | 6,657,400 |
| Total stockholders’ equity | US$ in thousands | 3,855,400 | 3,489,900 | 3,233,200 | 3,020,400 | 2,667,800 |
| Financial leverage ratio | 2.22 | 2.39 | 2.47 | 2.45 | 2.50 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $8,569,200K ÷ $3,855,400K
= 2.22
The financial leverage ratio of Church & Dwight Co., Inc. has been gradually decreasing over the past five years. A lower financial leverage ratio indicates that the company is relying less on debt to finance its operations and growth. This trend suggests that the company has been able to manage its debt levels effectively and improve its overall financial health.
While a decrease in the financial leverage ratio can be a positive sign of financial stability, it is essential to consider the reasons behind this trend. It could be a result of the company paying down its debt, increasing its equity base, or a combination of both. Further analysis of the company's capital structure, debt management strategy, and overall financial performance is necessary to determine the implications of the decreasing financial leverage ratio.
Overall, a declining financial leverage ratio for Church & Dwight Co., Inc. indicates a potentially healthier balance sheet and lower financial risk, but further evaluation is required to fully understand the impact on the company's financial position and future outlook.
Peer comparison
Dec 31, 2023