Dana Inc (DAN)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 7,485,000 | 7,965,000 | 7,449,000 | 7,632,000 | 7,376,000 |
| Total stockholders’ equity | US$ in thousands | 1,333,000 | 1,575,000 | 1,551,000 | 1,922,000 | 1,758,000 |
| Financial leverage ratio | 5.62 | 5.06 | 4.80 | 3.97 | 4.20 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,485,000K ÷ $1,333,000K
= 5.62
The financial leverage ratio of Dana Inc has shown fluctuations over the years. As of December 31, 2020, the ratio was 4.20, indicating that the company was relying on debt financing to a significant extent. However, by December 31, 2021, the ratio decreased to 3.97, suggesting a slight improvement in the company's ability to meet its financial obligations with its own funds.
Subsequently, there was a notable increase in the financial leverage ratio to 4.80 by December 31, 2022, and a further increase to 5.06 by December 31, 2023. These increments may signify a higher level of debt in the company's capital structure, potentially increasing the financial risk and leverage.
By December 31, 2024, the financial leverage ratio reached 5.62, indicating a continued trend of higher reliance on debt financing. It is essential for stakeholders to monitor this ratio closely, as excessively high leverage levels can increase the company's vulnerability to economic downturns or rising interest rates.
Peer comparison
Dec 31, 2024