Corteva Inc (CTVA)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 42,996,000 | 42,618,000 | 42,344,000 | 42,649,000 | 42,397,000 |
| Total stockholders’ equity | US$ in thousands | 25,037,000 | 25,302,000 | 25,384,000 | 24,824,000 | 24,309,000 |
| Financial leverage ratio | 1.72 | 1.68 | 1.67 | 1.72 | 1.74 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $42,996,000K ÷ $25,037,000K
= 1.72
The financial leverage ratio of Corteva Inc has shown some fluctuations over the past five years. In general, the ratio has ranged from 1.67 to 1.74 during this period. The financial leverage ratio indicates the extent to which the company relies on debt financing compared to equity. A ratio above 1 indicates that the company has more debt than equity in its capital structure.
Corteva's financial leverage ratio has been relatively stable around the 1.7 mark, suggesting a moderate reliance on debt to finance its operations and investments. The slight increase in the ratio in 2023 compared to the previous year may indicate a slightly higher level of debt utilization, potentially to support growth initiatives or capital investments.
It's important to note that while debt can be a cost-effective source of funding, high levels of leverage can also increase financial risk, especially in times of economic uncertainty or volatility. Therefore, it is crucial for Corteva to carefully manage its debt levels to ensure financial stability and solvency in the long term.
Peer comparison
Dec 31, 2023