Dow Inc (DOW)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 57,967,000 | 60,603,000 | 62,990,000 | 61,470,000 | 60,524,000 |
| Total stockholders’ equity | US$ in thousands | 18,607,000 | 20,718,000 | 18,165,000 | 12,435,000 | 13,541,000 |
| Financial leverage ratio | 3.12 | 2.93 | 3.47 | 4.94 | 4.47 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $57,967,000K ÷ $18,607,000K
= 3.12
The financial leverage ratio measures the extent to which a company relies on debt financing. Dow Inc's financial leverage ratio has fluctuated over the past five years.
In 2023, the ratio stands at 3.12, reflecting a moderate level of financial leverage. This represents an increase from the previous year, where the ratio was 2.93. The increase indicates a higher reliance on debt financing in the company's capital structure compared to the prior year.
In 2021, the financial leverage ratio was 3.47, indicating a higher level of leverage compared to 2022. However, it is still lower than the levels observed in 2020 and 2019.
The highest financial leverage ratio was recorded in 2020 and 2019, at 4.94 and 4.47 respectively. These high ratios suggest a significant reliance on debt financing during those years.
Overall, the fluctuation in Dow Inc's financial leverage ratio indicates varying levels of debt usage in the company's capital structure over the years, with a notable increase in 2023 compared to the previous year.
Peer comparison
Dec 31, 2023