Dover Corporation (DOV)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 12,509,200 | 11,348,500 | 10,896,500 | 10,403,600 | 9,152,070 |
| Total stockholders’ equity | US$ in thousands | 6,954,000 | 5,106,600 | 4,286,370 | 4,189,530 | 3,385,770 |
| Financial leverage ratio | 1.80 | 2.22 | 2.54 | 2.48 | 2.70 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $12,509,200K ÷ $6,954,000K
= 1.80
The financial leverage ratio for Dover Corporation has shown a declining trend over the period from December 31, 2020, to December 31, 2024. The ratio decreased from 2.70 in 2020 to 1.80 in 2024. This indicates a reduction in the company's reliance on debt to finance its operations and investments. A lower financial leverage ratio suggests a stronger financial position and lower risk of financial distress, as the company has less debt relative to its equity. Dover Corporation appears to have been managing its capital structure effectively, which may be viewed positively by investors and creditors.
Peer comparison
Dec 31, 2024