Dow Inc (DOW)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 57,312,000 | 59,389,000 | 58,526,000 | 58,817,000 | 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 |
| Total stockholders’ equity | US$ in thousands | 17,355,000 | 18,311,000 | 18,318,000 | 18,425,000 | 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 |
| Financial leverage ratio | 3.30 | 3.24 | 3.19 | 3.19 | 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 |
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 from 4.70 in March 2020 to 3.30 in December 2024. This indicates that the company has been gradually reducing its reliance on debt to finance its operations over the years. A lower financial leverage ratio generally suggests lower financial risk and more financial stability as the company has a lower proportion of debt in its capital structure compared to equity. Dow Inc's decreasing financial leverage ratio may imply that the company has been managing its debt levels effectively, potentially reducing interest expenses and improving its overall financial health. The downward trend in the financial leverage ratio could be a positive signal for investors and creditors as it reflects a more conservative approach to capital structure management by Dow Inc.
Peer comparison
Dec 31, 2024