Dana Inc (DAN)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 7,965,000 | 7,449,000 | 7,632,000 | 7,376,000 | 7,220,000 |
| Total stockholders’ equity | US$ in thousands | 1,575,000 | 1,551,000 | 1,922,000 | 1,758,000 | 1,873,000 |
| Financial leverage ratio | 5.06 | 4.80 | 3.97 | 4.20 | 3.85 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,965,000K ÷ $1,575,000K
= 5.06
The financial leverage ratio of Dana Inc has been fluctuating over the past five years. In 2023, the ratio stood at 5.06, which indicates that the company had higher financial leverage compared to the previous years. This could suggest that Dana Inc relied more on debt financing in 2023.
Similarly, in 2022, the financial leverage ratio was 4.80, also showing an increase compared to 2021. This implies a trend towards higher financial risk due to increased debt usage.
In 2021, the financial leverage ratio was 3.97, lower than the subsequent years but still higher than in 2020. This indicates a moderate level of financial leverage and potentially a balanced mix of debt and equity in the company's capital structure.
In 2020, the financial leverage ratio increased to 4.20, implying a higher level of debt usage compared to 2019 when the ratio was 3.85. The increase in financial leverage from 2019 to 2020 may have been driven by various factors such as strategic investments, acquisitions, or other financing activities.
Overall, the fluctuation in Dana Inc's financial leverage ratio over the years suggests varying degrees of reliance on debt financing, which could impact the company's financial stability and risk profile. It would be important for stakeholders to monitor this ratio closely to assess the company's ability to meet its debt obligations and leverage levels effectively.
Peer comparison
Dec 31, 2023