Corteva Inc (CTVA)
Financial leverage ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 42,996,000 | 43,110,000 | 44,189,000 | 45,500,000 | 42,618,000 | 40,651,000 | 40,906,000 | 42,633,000 | 42,344,000 | 41,122,000 | 41,496,000 | 42,549,000 | 42,649,000 | 41,690,000 | 42,180,000 | 42,978,000 | 42,397,000 |
| Total stockholders’ equity | US$ in thousands | 25,037,000 | 25,226,000 | 26,220,000 | 25,599,000 | 25,302,000 | 24,844,000 | 25,831,000 | 25,696,000 | 25,384,000 | 24,740,000 | 25,385,000 | 24,538,000 | 24,824,000 | 24,106,000 | 24,561,000 | 23,825,000 | 24,309,000 |
| Financial leverage ratio | 1.72 | 1.71 | 1.69 | 1.78 | 1.68 | 1.64 | 1.58 | 1.66 | 1.67 | 1.66 | 1.63 | 1.73 | 1.72 | 1.73 | 1.72 | 1.80 | 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 measures the proportion of a company's total assets that are financed by debt as opposed to equity. A higher financial leverage ratio indicates higher financial risk as the company has more debt relative to its equity.
Based on the data provided, we can see that Corteva Inc's financial leverage ratio has fluctuated over the past eight quarters. In Q4 2023, the financial leverage ratio was 1.72, slightly higher than the previous quarter. This suggests that the company increased its reliance on debt to finance its assets during this period.
Looking at the trend over the past year, we observe that the financial leverage ratio has generally been increasing since Q1 2022. This could indicate that Corteva Inc has been taking on more debt to fund its operations or investments, potentially exposing the company to higher financial risks.
It is important for investors and stakeholders to closely monitor changes in the financial leverage ratio to assess the company's ability to meet its debt obligations and manage its overall financial health. A consistently high or increasing financial leverage ratio may raise concerns about the company's solvency and ability to weather economic downturns.
Peer comparison
Dec 31, 2023