ESCO Technologies Inc (ESE)
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 | 1,838,620 | 1,811,060 | 1,784,190 | 1,772,530 | 1,683,210 | 1,703,510 | 1,682,600 | 1,635,990 | 1,654,460 | 1,652,690 | 1,625,790 | 1,604,220 | 1,577,340 | 1,408,680 | 1,357,400 | 1,383,580 | 1,370,190 | 1,444,580 | 1,441,580 | 1,431,570 |
| Total stockholders’ equity | US$ in thousands | 1,237,350 | 1,193,690 | 1,166,410 | 1,154,090 | 1,131,140 | 1,107,040 | 1,080,800 | 1,066,400 | 1,048,160 | 1,029,880 | 1,021,170 | 1,015,280 | 1,019,700 | 1,004,850 | 990,660 | 976,162 | 959,026 | 943,457 | 926,207 | 915,491 |
| Financial leverage ratio | 1.49 | 1.52 | 1.53 | 1.54 | 1.49 | 1.54 | 1.56 | 1.53 | 1.58 | 1.60 | 1.59 | 1.58 | 1.55 | 1.40 | 1.37 | 1.42 | 1.43 | 1.53 | 1.56 | 1.56 |
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 shown some fluctuations over the past five years, ranging from a low of 1.37 to a high of 1.60. The ratio measures the company's level of debt relative to its equity, indicating the extent to which the company relies on debt to finance its operations and growth.
The trend in the financial leverage ratio indicates that the company's reliance on debt has been increasing over the past few years, reaching a peak of 1.60 in the most recent period. A higher financial leverage ratio suggests that the company has a higher level of financial risk, as it indicates a greater proportion of debt in the company's capital structure compared to equity.
It is important for investors and stakeholders to closely monitor ESCO Technologies Inc's financial leverage ratio, as a significant increase in leverage could potentially lead to liquidity issues or difficulties in meeting debt obligations. Additionally, a high financial leverage ratio may impact the company's credit rating and borrowing costs.
Overall, the trend in ESCO Technologies Inc's financial leverage ratio signals a growing reliance on debt financing, highlighting the importance of effective debt management and monitoring of financial risk for the company's long-term financial stability.
Peer comparison
Sep 30, 2024