Edgewell Personal Care Co (EPC)
Financial leverage ratio
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,730,900 | 3,708,400 | 3,756,300 | 3,787,200 | 3,740,700 | 3,766,300 | 3,798,600 | 3,797,000 | 3,713,100 | 3,721,300 | 3,793,300 | 3,807,100 | 3,674,600 | 3,647,200 | 3,537,900 | 3,496,100 | 3,540,900 | 3,465,600 | 3,308,500 | 3,303,200 |
| Total stockholders’ equity | US$ in thousands | 1,584,100 | 1,576,600 | 1,551,300 | 1,545,800 | 1,540,500 | 1,559,900 | 1,515,300 | 1,494,600 | 1,467,100 | 1,478,100 | 1,515,500 | 1,552,300 | 1,590,800 | 1,511,600 | 1,464,100 | 1,465,200 | 1,438,600 | 1,368,200 | 1,347,300 | 1,348,100 |
| Financial leverage ratio | 2.36 | 2.35 | 2.42 | 2.45 | 2.43 | 2.41 | 2.51 | 2.54 | 2.53 | 2.52 | 2.50 | 2.45 | 2.31 | 2.41 | 2.42 | 2.39 | 2.46 | 2.53 | 2.46 | 2.45 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,730,900K ÷ $1,584,100K
= 2.36
The financial leverage ratio of Edgewell Personal Care Co has shown some fluctuations over the past few years. The ratio has ranged from 2.31 to 2.54, with the most recent value being 2.36 as of September 30, 2024.
A financial leverage ratio of 2.36 indicates that Edgewell Personal Care Co relies on debt financing to a greater extent than equity financing, as the ratio is above 1. This suggests that the company has a higher proportion of debt in its capital structure compared to equity.
The trend of the financial leverage ratio fluctuating between 2.31 and 2.54 over the past years indicates some variability in the company's leverage position. A ratio above 2 suggests higher financial risk due to increased reliance on debt, which can magnify returns but also increase the potential for financial distress.
It is important for investors and stakeholders to closely monitor Edgewell Personal Care Co's financial leverage ratio over time to assess the company's risk profile and ability to meet its debt obligations. Additionally, management should ensure that the company's leverage is maintained at a sustainable level to support long-term financial stability and growth.
Peer comparison
Sep 30, 2024