Carlisle Companies Incorporated (CSL)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,620,000 | 7,222,000 | 7,246,800 | 5,866,400 | 5,496,000 |
| Total stockholders’ equity | US$ in thousands | 2,829,000 | 3,024,400 | 2,629,500 | 2,537,700 | 2,642,800 |
| Financial leverage ratio | 2.34 | 2.39 | 2.76 | 2.31 | 2.08 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,620,000K ÷ $2,829,000K
= 2.34
The financial leverage ratio of Carlisle Companies Inc. has fluctuated over the past five years, indicating changes in the company's capital structure. The ratio ranged from 2.08 in 2019 to 2.76 in 2021, with values of 2.31 in 2020, 2.39 in 2022, and 2.34 in 2023.
A financial leverage ratio above 1 indicates that the company relies more on debt than equity to finance its operations. The downward trend from 2.76 in 2021 to 2.34 in 2023 suggests a decrease in the proportion of debt financing relative to equity. This reduction could signify a shift towards a more balanced or conservative capital structure, potentially reducing financial risk for the company.
Conversely, the increase in the ratio from 2019 to 2021 and then a slight decrease in 2023 could imply changes in the company's financing strategy or investment decisions during those years.
Overall, observing the trend in the financial leverage ratio helps in assessing Carlisle Companies Inc.'s dependency on debt and its ability to meet financial obligations, manage risks, and maintain financial stability over time.
Peer comparison
Dec 31, 2023