Carpenter Technology Corporation (CRS)

Financial leverage ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Total assets	US$ in thousands	3,291,700	3,053,900	2,932,300	2,971,200	3,227,200
Total stockholders’ equity	US$ in thousands	1,628,800	1,396,100	1,330,500	1,392,300	1,445,700
Financial leverage ratio		2.02	2.19	2.20	2.13	2.23

June 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,291,700K ÷ $1,628,800K
= 2.02

The financial leverage ratio of Carpenter Technology Corporation has exhibited fluctuations over the past five years. The ratio decreased from 2.23 in June 2020 to 2.02 in June 2024. This indicates that the company's reliance on debt to finance its operations decreased over this period. However, it is important to note that the ratio increased to 2.19 in June 2023 before declining again.

Overall, the financial leverage ratio of Carpenter Technology Corporation suggests a moderate level of leverage, with the company using a combination of debt and equity in its capital structure. The decreasing trend in the ratio indicates potential improvements in the company's financial stability and ability to meet its financial obligations. However, further analysis of other financial metrics and industry benchmarks would provide a more comprehensive assessment of the company's leverage position.