Crane Company (CR)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,641,900 | 2,333,600 | 4,397,000 | 4,486,600 | 4,588,900 |
| Total stockholders’ equity | US$ in thousands | 1,638,700 | 1,357,800 | 1,907,100 | 1,835,100 | 1,531,100 |
| Financial leverage ratio | 1.61 | 1.72 | 2.31 | 2.44 | 3.00 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,641,900K ÷ $1,638,700K
= 1.61
The financial leverage ratio of Crane Company has shown a decreasing trend over the past five years, decreasing from 3.00 in December 31, 2020, to 1.61 in December 31, 2024. This indicates that the company has been reducing its reliance on debt to finance its operations and investments, which can be seen as a positive sign of financial health and stability. A lower financial leverage ratio implies that the company is less leveraged and has a stronger equity position relative to its debt, providing a cushion against financial risks and potential downturns in the business environment. Overall, the decreasing trend in the financial leverage ratio suggests that Crane Company has been effectively managing its debt levels and improving its overall financial position over the years.
Peer comparison
Dec 31, 2024