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 Sep 30, 2019 Jun 30, 2019 Mar 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 43,235,000 43,922,000 110,102,000
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 25,015,000 25,810,000 74,571,000
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 1.73 1.70 1.48

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

Company name
Symbol
Financial leverage ratio
Corteva Inc
CTVA
1.72
Fresh Del Monte Produce Inc
FDP
1.68