Eastman Chemical Company (EMN)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 14,633,000 | 14,667,000 | 15,519,000 | 16,083,000 | 16,008,000 |
| Total stockholders’ equity | US$ in thousands | 5,458,000 | 5,153,000 | 5,704,000 | 6,023,000 | 5,958,000 |
| Financial leverage ratio | 2.68 | 2.85 | 2.72 | 2.67 | 2.69 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $14,633,000K ÷ $5,458,000K
= 2.68
The financial leverage ratio of Eastman Chemical Co has fluctuated over the past five years. It decreased from 2.69 in 2019 to 2.67 in 2020, indicating a slight improvement in the company's ability to meet its financial obligations with equity rather than debt. However, the ratio increased to 2.72 in 2021, suggesting a higher reliance on debt to finance its operations.
The ratio peaked at 2.85 in 2022, indicating a significant increase in financial leverage, possibly due to higher debt levels relative to equity. In 2023, the ratio decreased to 2.68, which may signify a reduction in the company's debt burden or an increase in equity compared to the previous year.
Overall, Eastman Chemical Co's financial leverage ratio has shown variability, highlighting the importance of monitoring the company's capital structure and debt levels to assess its financial risk and stability.
Peer comparison
Dec 31, 2023