Curtiss-Wright Corporation (CW)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,620,970 | 4,448,300 | 4,103,540 | 4,021,330 | 3,764,260 |
| Total stockholders’ equity | US$ in thousands | 2,328,410 | 1,981,210 | 1,826,490 | 1,787,570 | 1,774,370 |
| Financial leverage ratio | 1.98 | 2.25 | 2.25 | 2.25 | 2.12 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,620,970K ÷ $2,328,410K
= 1.98
The financial leverage ratio of Curtiss-Wright Corp. has exhibited some fluctuations over the past five years. The ratio declined from 2.25 in 2021 to 2.23 in 2022, before further decreasing to 1.98 in 2023. This indicates that the company has reduced its financial leverage in 2023 compared to the previous two years. A higher financial leverage ratio suggests a higher level of debt financing relative to equity, whereas a lower ratio indicates a lower reliance on debt to finance operations.
The decreasing trend in the financial leverage ratio may signify that Curtiss-Wright Corp. has been managing its debt levels more effectively or has been using more equity financing in recent years. Lowering financial leverage can reduce the financial risk for the company as it may lead to lower interest expenses and higher financial stability, especially during economic downturns.
However, it's essential to analyze the company's overall financial health, capital structure, and industry benchmarks to gain a more holistic understanding of the implications of these changes in the financial leverage ratio. Further insights into the factors driving these changes would be necessary to assess the company's strategic financial decisions and potential future performance.
Peer comparison
Dec 31, 2023