Crane NXT Co (CXT)
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 | 2,129,400 | 2,094,100 | 2,195,000 | 4,336,000 | 2,129,400 | 4,132,400 | 4,499,100 | 4,353,200 | 4,486,600 | 4,474,500 | 4,423,200 | 4,586,500 | 4,615,000 | 4,623,000 | 4,630,300 | 4,464,600 | 4,423,700 | 4,158,500 | 4,141,800 | 4,142,300 |
| Total stockholders’ equity | US$ in thousands | 964,000 | 872,600 | 855,200 | 441,100 | 783,800 | 701,600 | 731,100 | 776,200 | 763,800 | 1,807,600 | 1,725,200 | 1,595,000 | 1,528,900 | 1,506,500 | 1,421,100 | 1,405,200 | 1,473,700 | 1,697,500 | 1,672,000 | 1,590,600 |
| Financial leverage ratio | 2.21 | 2.40 | 2.57 | 9.83 | 2.72 | 5.89 | 6.15 | 5.61 | 5.87 | 2.48 | 2.56 | 2.88 | 3.02 | 3.07 | 3.26 | 3.18 | 3.00 | 2.45 | 2.48 | 2.60 |
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 some fluctuations over the past few quarters. The ratio was highest at 9.83 in March 2023, indicating a significant level of debt relative to equity at that point. This was a cause for concern as excessively high leverage can increase financial risk for the company.
There was a notable decrease in the financial leverage ratio in the subsequent quarters, with the ratio gradually declining to more manageable levels. The ratio ranged between 2.21 and 6.15 in the following quarters, showing that Crane NXT Co made efforts to reduce its debt levels and improve its overall financial position.
Overall, while the company experienced a period of high financial leverage in March 2023, it has since taken steps to reduce its reliance on debt and has been successful in improving its leverage ratio to a more sustainable range. Monitoring this ratio going forward will be crucial to ensure that Crane NXT Co maintains a healthy balance between debt and equity in its capital structure.
Peer comparison
Dec 31, 2023