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