Eastman Chemical Company (EMN)
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 | 15,213,000 | 15,060,000 | 14,945,000 | 14,748,000 | 14,633,000 | 14,594,000 | 14,771,000 | 14,983,000 | 14,667,000 | 14,985,000 | 14,875,000 | 15,806,000 | 15,519,000 | 16,259,000 | 16,098,000 | 16,195,000 | 16,083,000 | 16,009,000 | 15,973,000 | 16,465,000 |
| Total stockholders’ equity | US$ in thousands | 5,779,000 | 5,654,000 | 5,627,000 | 5,538,000 | 5,458,000 | 5,352,000 | 5,281,000 | 5,188,000 | 5,153,000 | 5,384,000 | 5,323,000 | 5,893,000 | 5,704,000 | 6,120,000 | 5,944,000 | 6,233,000 | 6,023,000 | 6,075,000 | 6,021,000 | 6,117,000 |
| Financial leverage ratio | 2.63 | 2.66 | 2.66 | 2.66 | 2.68 | 2.73 | 2.80 | 2.89 | 2.85 | 2.78 | 2.79 | 2.68 | 2.72 | 2.66 | 2.71 | 2.60 | 2.67 | 2.64 | 2.65 | 2.69 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $15,213,000K ÷ $5,779,000K
= 2.63
The financial leverage ratio of Eastman Chemical Company has shown some fluctuations over the past few years, ranging from 2.60 to 2.89. The ratio peaked at 2.89 on March 31, 2023, indicating a higher level of financial leverage at that time. Subsequently, the ratio decreased and remained relatively stable around the 2.60 to 2.80 range until December 31, 2024. This ratio measures the extent to which the company relies on debt financing versus equity financing to support its assets and operations. A higher financial leverage ratio typically indicates a higher level of debt in relation to equity, which can increase financial risk but may also amplify returns for shareholders during periods of growth. Conversely, a lower ratio suggests a more conservative capital structure with less reliance on debt financing. Overall, monitoring changes in the financial leverage ratio can provide insights into the company's capital structure strategies and risk management practices.
Peer comparison
Dec 31, 2024