CNH Industrial N.V. (CNH)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 42,933,000 | 46,267,000 | 39,381,000 | 49,416,000 | 48,719,000 |
| Total stockholders’ equity | US$ in thousands | 7,651,000 | 8,030,000 | 6,927,000 | 6,778,000 | 4,907,000 |
| Financial leverage ratio | 5.61 | 5.76 | 5.69 | 7.29 | 9.93 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $42,933,000K ÷ $7,651,000K
= 5.61
The financial leverage ratio of CNH Industrial N.V. has shown a decreasing trend over the past five years. It decreased from 9.93 as of December 31, 2020, to 7.29 as of December 31, 2021, and continued to decline to 5.69 as of December 31, 2022. However, there was a slight increase to 5.76 as of December 31, 2023, followed by a further decrease to 5.61 as of December 31, 2024.
This indicates that the company's reliance on debt funding relative to its equity has been gradually decreasing, which could suggest improved financial stability and lower risk. It may also imply that the company is becoming more efficient in managing its capital structure and reducing its overall financial risk exposure.
Peer comparison
Dec 31, 2024