Crane NXT Co (CXT)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,129,400 | 2,129,400 | 4,486,600 | 4,615,000 | 4,423,700 |
| Total stockholders’ equity | US$ in thousands | 964,000 | 783,800 | 763,800 | 1,528,900 | 1,473,700 |
| Financial leverage ratio | 2.21 | 2.72 | 5.87 | 3.02 | 3.00 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,129,400K ÷ $964,000K
= 2.21
The financial leverage ratio of Crane NXT Co has shown a decreasing trend over the past five years. In 2021, the ratio was significantly high at 5.87, indicating a high level of financial leverage or debt relative to equity. However, there has been a notable decrease in the ratio in the subsequent years, with the ratio declining to 2.21 in 2023.
This downward trend suggests that Crane NXT Co has been reducing its reliance on debt financing and improving its financial stability. A lower financial leverage ratio generally indicates a lower level of financial risk and a stronger financial position, as the company is using less debt to finance its operations.
Overall, the decreasing trend in Crane NXT Co's financial leverage ratio reflects a positive development in the company's capital structure and financial health over the years. However, it is important to consider other factors such as industry benchmarks and the company's overall financial performance when assessing the implications of the financial leverage ratio.
Peer comparison
Dec 31, 2023