Crane Company (CR)
Financial leverage ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | ||
|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,333,600 | 2,191,900 | 2,179,100 | 2,231,700 |
| Total stockholders’ equity | US$ in thousands | 1,357,800 | 1,284,100 | 1,235,200 | 1,560,400 |
| Financial leverage ratio | 1.72 | 1.71 | 1.76 | 1.43 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,333,600K ÷ $1,357,800K
= 1.72
The financial leverage ratio of Crane Company has exhibited varying trends over the past four quarters. The ratio shows the proportion of the company's total assets financed by debt compared to equity. A higher financial leverage ratio indicates higher reliance on debt financing, which can magnify returns but also increase financial risk.
In December 2023, the financial leverage ratio was 1.72, indicating that 72% of the company's total assets were financed by debt. This was a slight increase from the previous quarter but remained relatively stable.
In September 2023, the financial leverage ratio was 1.71, showing a similar level of debt financing compared to December 2023.
In June 2023, the financial leverage ratio increased to 1.76, suggesting a higher proportion of debt in the company's capital structure. This could indicate a strategy to leverage debt for potential growth opportunities or other financial objectives.
In March 2023, the financial leverage ratio decreased significantly to 1.43, reflecting a lower reliance on debt financing compared to the previous quarter. This could be a result of debt repayments, increased equity injections, or a shift in the company's capital structure.
Overall, the fluctuation in Crane Company's financial leverage ratio over the past four quarters highlights the dynamic nature of the company's financing decisions and its ability to adjust its capital structure based on changing business needs and financial conditions.
Peer comparison
Dec 31, 2023