ESAB Corp (ESAB)
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 | ||
|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,828,630 | 3,756,040 | 3,862,840 | 3,849,140 | 3,754,020 | 3,539,900 | 3,673,700 | 3,781,350 |
| Total stockholders’ equity | US$ in thousands | 1,607,400 | 1,500,810 | 1,506,310 | 1,419,580 | 1,350,210 | 1,209,180 | 1,241,860 | 2,476,850 |
| Financial leverage ratio | 2.38 | 2.50 | 2.56 | 2.71 | 2.78 | 2.93 | 2.96 | 1.53 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,828,630K ÷ $1,607,400K
= 2.38
The financial leverage ratio of ESAB Corp has been decreasing gradually over the past five quarters. The ratio was highest in Q4 2022 at 2.78 and has since declined to 2.38 in Q4 2023. This indicates that the company has been reducing its reliance on debt to finance its operations and investments. A lower financial leverage ratio generally suggests a lower level of financial risk and potentially greater financial stability, as the company has a lesser proportion of debt in its capital structure. It seems that ESAB Corp has been actively managing its debt levels to maintain a healthier balance sheet and financial position over the analyzed period.
Peer comparison
Dec 31, 2023