Eastman Chemical Company (EMN)
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 | 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 | 16,008,000 | 16,137,000 | 16,256,000 | 16,361,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 5,958,000 | 6,020,000 | 5,869,000 | 5,843,000 |
| Financial leverage ratio | 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 | 2.69 | 2.68 | 2.77 | 2.80 |
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 been fluctuating over the past eight quarters, ranging from 2.68 to 2.89. A higher financial leverage ratio indicates that the company is relying more on debt to fund its operations and investments, which can increase financial risk but also potentially lead to higher returns on equity.
In this case, the company's leverage ratio peaked at 2.89 in Q1 2023 and reached its lowest point at 2.68 in Q4 2022. This suggests that Eastman Chemical Co may have increased its debt levels in Q1 2023 compared to previous quarters.
It is important for investors and analysts to closely monitor changes in the financial leverage ratio, as significant fluctuations could indicate shifts in the company's capital structure and financial health. Additionally, a consistently high or increasing leverage ratio may raise concerns about the company's ability to meet its debt obligations, particularly in challenging economic conditions.
Peer comparison
Dec 31, 2023