ESCO Technologies Inc (ESE)
Financial leverage ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,838,620 | 1,683,210 | 1,654,460 | 1,577,340 | 1,370,190 |
| Total stockholders’ equity | US$ in thousands | 1,237,350 | 1,131,140 | 1,048,160 | 1,019,700 | 959,026 |
| Financial leverage ratio | 1.49 | 1.49 | 1.58 | 1.55 | 1.43 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,838,620K ÷ $1,237,350K
= 1.49
ESCO Technologies Inc's financial leverage ratio has been relatively stable over the past five years, ranging from 1.43 to 1.58. The ratio indicates that the company relies on a moderate level of debt financing to support its operations and growth initiatives. A financial leverage ratio of 1.49 in 2024 and 2023 suggests that the company's total assets are approximately 1.49 times larger than its total equity.
Although the ratio has fluctuated slightly, it has generally remained within a reasonable range, indicating a balanced capital structure. A ratio of around 1.5 signifies that ESCO Technologies Inc has a relatively stable financial position and is not overly reliant on debt to fund its operations. However, it's important for the company to monitor this ratio closely to ensure that its debt levels remain sustainable and do not pose a significant risk to its financial stability.
Peer comparison
Sep 30, 2024