Dow Inc (DOW)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 57,312,000 | 57,967,000 | 60,603,000 | 62,990,000 | 61,470,000 |
| Total stockholders’ equity | US$ in thousands | 17,355,000 | 18,607,000 | 20,718,000 | 18,165,000 | 12,435,000 |
| Financial leverage ratio | 3.30 | 3.12 | 2.93 | 3.47 | 4.94 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $57,312,000K ÷ $17,355,000K
= 3.30
The financial leverage ratio of Dow Inc has shown a decreasing trend over the period from December 31, 2020, to December 31, 2024. The ratio decreased from 4.94 in 2020 to 3.30 in 2024, with fluctuations in between. This downward trend indicates that the company has been reducing its reliance on debt to finance its operations and investments. A lower financial leverage ratio suggests a lesser proportion of debt in the company's capital structure, which may imply lower financial risk and greater financial stability. Dow Inc's management of its financial leverage ratio reflects a strategic approach to balancing debt and equity financing to maintain a healthy financial position.
Peer comparison
Dec 31, 2024