Carpenter Technology Corporation (CRS)

Financial leverage ratio

		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	Sep 30, 2019
Total assets	US$ in thousands	3,291,700	3,176,200	3,159,200	3,076,800	3,053,900	3,094,300	3,056,500	2,939,900	2,932,300	3,230,200	2,879,900	2,959,900	2,971,200	3,011,000	3,043,900	3,128,700	3,227,200	3,429,400	3,403,600	3,341,500
Total stockholders’ equity	US$ in thousands	1,628,800	1,502,600	1,473,800	1,429,300	1,396,100	1,327,200	1,321,100	1,306,800	1,330,500	1,347,100	1,333,100	1,367,600	1,392,300	1,381,200	1,332,900	1,407,500	1,445,700	1,618,500	1,603,400	1,577,000
Financial leverage ratio		2.02	2.11	2.14	2.15	2.19	2.33	2.31	2.25	2.20	2.40	2.16	2.16	2.13	2.18	2.28	2.22	2.23	2.12	2.12	2.12

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 shown some fluctuations over the past few quarters, ranging from 2.02 to 2.40. The ratio indicates the company's reliance on debt financing to support its operations and growth.

A ratio above 1 suggests that the company has more debt than equity in its capital structure, which can increase financial risk but also amplify returns for shareholders when the business is performing well.

The company's financial leverage has generally been above 2, indicating a significant level of debt in its capital structure. This suggests that Carpenter Technology Corporation relies heavily on debt to finance its operations and investments.

It's important for investors and stakeholders to closely monitor the financial leverage ratio over time to assess the company's ability to manage its debt levels effectively and sustain its financial health. Further analysis of the company's debt structure and overall financial performance would provide deeper insights into the risks and opportunities associated with its leverage ratio.