CNH Industrial N.V. (CNH)
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 | 42,933,000 | 44,033,000 | 43,959,000 | 45,726,000 | 46,351,000 | 43,041,000 | 42,687,000 | 40,566,000 | 39,381,000 | 35,844,000 | 35,648,000 | 36,485,000 | 49,416,000 | 47,693,000 | 49,222,000 | 46,705,000 | 48,719,000 | 45,069,000 | 45,019,000 | 43,913,000 |
| Total stockholders’ equity | US$ in thousands | 7,651,000 | 7,643,000 | 7,538,000 | 7,892,000 | 8,114,000 | 7,985,000 | 7,500,000 | 7,324,000 | 6,927,000 | 6,354,000 | 5,788,000 | 5,602,000 | 6,778,000 | 6,292,000 | 6,074,000 | 5,506,000 | 5,029,000 | 4,840,000 | 5,963,000 | 5,658,000 |
| Financial leverage ratio | 5.61 | 5.76 | 5.83 | 5.79 | 5.71 | 5.39 | 5.69 | 5.54 | 5.69 | 5.64 | 6.16 | 6.51 | 7.29 | 7.58 | 8.10 | 8.48 | 9.69 | 9.31 | 7.55 | 7.76 |
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 declining trend over the period from March 31, 2020, to December 31, 2024. The ratio decreased from 7.76 on March 31, 2020, to 5.61 on December 31, 2024. This indicates that the company has been reducing its reliance on debt financing in its capital structure. A decreasing financial leverage ratio generally suggests a more conservative financial strategy and lower financial risk for the company.
It is essential to note that a lower financial leverage ratio may also indicate reduced potential for higher returns on equity, as debt can magnify profits in good times but lead to increased losses in bad times. However, a prudent approach towards managing debt levels can enhance the company's financial stability and resilience in the face of economic uncertainties. Overall, the decreasing trend in CNH Industrial N.V.'s financial leverage ratio signifies a positive shift towards a more balanced and sustainable capital structure.
Peer comparison
Dec 31, 2024