Dupont De Nemours Inc (DD)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 38,552,000 | 41,355,000 | 45,707,000 | 70,903,000 | 69,349,000 |
| Total stockholders’ equity | US$ in thousands | 24,279,000 | 26,569,000 | 26,433,000 | 38,504,000 | 40,987,000 |
| Financial leverage ratio | 1.59 | 1.56 | 1.73 | 1.84 | 1.69 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $38,552,000K ÷ $24,279,000K
= 1.59
Over the past five years, DuPont de Nemours Inc has displayed fluctuations in its financial leverage ratio, which indicates the extent to which the company relies on debt financing. The financial leverage ratio has decreased from 1.84 in 2020 to 1.59 in 2023, suggesting a reduction in the proportion of debt in the company's capital structure.
A declining trend in the financial leverage ratio can signal an improvement in financial stability and lower financial risk for the company. This may be viewed positively by investors and creditors as it indicates a shift towards a more conservative financial structure.
However, it is essential to assess the potential impact of decreased leverage on the company's ability to utilize debt financing for growth opportunities and investment in the future. Overall, the decreasing trend in DuPont de Nemours Inc's financial leverage ratio implies a strategic decision towards reducing reliance on debt, potentially enhancing the company's financial health and flexibility.
Peer comparison
Dec 31, 2023