CNH Industrial N.V. (CNH)
Financial leverage ratio
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 44,033,000 | 43,959,000 | 45,726,000 | 46,267,000 | 43,041,000 | 42,687,000 | 40,566,000 | 39,381,000 | 35,844,000 | 35,648,000 | 36,485,000 | 6,789,000 | 47,693,000 | 49,222,000 | 46,705,000 | 48,719,000 | 45,069,000 | 45,019,000 | 43,913,000 | 47,352,000 |
| Total stockholders’ equity | US$ in thousands | 7,769,000 | 7,662,000 | 8,012,000 | 8,234,000 | 8,115,000 | 7,630,000 | 7,451,000 | 6,976,000 | 6,409,000 | 5,843,000 | 5,656,000 | 6,853,000 | 6,292,000 | 6,074,000 | 5,506,000 | 5,029,000 | 4,840,000 | 5,963,000 | 5,658,000 | 6,156,000 |
| Financial leverage ratio | 5.67 | 5.74 | 5.71 | 5.62 | 5.30 | 5.59 | 5.44 | 5.65 | 5.59 | 6.10 | 6.45 | 0.99 | 7.58 | 8.10 | 8.48 | 9.69 | 9.31 | 7.55 | 7.76 | 7.69 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $44,033,000K ÷ $7,769,000K
= 5.67
The financial leverage ratio of CNH Industrial N.V. has shown fluctuations over the given periods, ranging from 5.30 to 9.69. The ratio indicates the company's reliance on debt financing to support its operations and growth.
Analyzing the trend, we observe a general upward trajectory in the financial leverage ratio from 5.30 in September 2023 to 9.69 in December 2020. This significant increase suggests a higher level of debt utilization compared to equity during this period. Subsequently, there is a gradual decline in the ratio, which may imply a decrease in debt levels relative to equity.
The ratio peaked at 9.69 in December 2020, indicating a period of potentially high financial risk due to excessive debt levels. This spike is followed by a downward trend, suggesting a strategic shift towards reducing leverage and optimizing the company's capital structure.
Overall, the fluctuating nature of the financial leverage ratio for CNH Industrial N.V. reflects variations in the company's capital structure and debt management strategies over the analyzed periods. Investors and stakeholders should closely monitor these trends to assess the company's financial risk and sustainability.
Peer comparison
Sep 30, 2024