Dow Inc (DOW)
Financial leverage ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 57,967,000 | 58,288,000 | 58,294,000 | 59,316,000 | 60,603,000 | 59,557,000 | 62,143,000 | 63,335,000 | 62,990,000 | 61,749,000 | 61,768,000 | 60,437,000 | 61,470,000 | 59,945,000 | 59,276,000 | 60,686,000 | 60,524,000 | 64,937,000 | 64,889,000 | 79,737,000 |
| Total stockholders’ equity | US$ in thousands | 18,607,000 | 19,567,000 | 19,997,000 | 20,181,000 | 20,718,000 | 18,117,000 | 18,973,000 | 18,880,000 | 18,165,000 | 16,439,000 | 15,573,000 | 14,003,000 | 12,435,000 | 12,354,000 | 12,537,000 | 12,906,000 | 13,541,000 | 17,399,000 | 17,911,000 | 32,668,000 |
| Financial leverage ratio | 3.12 | 2.98 | 2.92 | 2.94 | 2.93 | 3.29 | 3.28 | 3.35 | 3.47 | 3.76 | 3.97 | 4.32 | 4.94 | 4.85 | 4.73 | 4.70 | 4.47 | 3.73 | 3.62 | 2.44 |
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 uses debt to finance its operations and assets. A higher financial leverage ratio indicates a greater reliance on debt financing, while a lower ratio suggests a more conservative capital structure.
Based on the provided data for Dow Inc, the financial leverage ratio has fluctuated over the past eight quarters, ranging from 2.92 to 3.35. The trend indicates that the company experienced a significant increase in leverage during the third quarter of 2022, followed by a decline in the fourth quarter of the same year. Subsequently, the ratio remained relatively stable in the first and second quarters of 2023 before experiencing a slight uptick in the third quarter of 2023.
The overall trend suggests that Dow Inc's capital structure has fluctuated, indicating varying levels of debt utilization over the analyzed time frame. It would be prudent to further investigate the factors driving these fluctuations and consider their implications for the company's financial risk and stability.
Peer comparison
Dec 31, 2023