Element Solutions Inc (ESI)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,873,900 | 4,974,100 | 4,903,700 | 5,138,400 | 4,483,400 |
| Total stockholders’ equity | US$ in thousands | 2,383,000 | 2,328,500 | 2,332,500 | 2,480,700 | 2,319,800 |
| Financial leverage ratio | 2.05 | 2.14 | 2.10 | 2.07 | 1.93 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,873,900K ÷ $2,383,000K
= 2.05
The financial leverage ratio of Element Solutions Inc. demonstrates a trend of gradual increase over the period from December 31, 2020 to December 31, 2024. Specifically, the ratio rose from 1.93 in 2020 to 2.07 in 2021, indicating a modest increase in leverage. This upward trajectory continued into 2022, reaching 2.10, and further increased to 2.14 by 2023, reflecting a consistent pattern of leveraging. However, in 2024, the ratio experienced a slight decline to 2.05, though it remained elevated relative to the 2020 level.
Overall, the company’s financial leverage ratio suggests an ongoing, albeit modest, increase in reliance on debt to finance its assets during the analyzed period. The peak in 2023 followed by a slight decrease in 2024 may indicate a strategic adjustment to optimize its capital structure, potentially reducing financial risk or adapting to prevailing market conditions. The pattern illustrates a generally stable but progressively leveraged balance sheet profile over the four-year span.
Peer comparison
Dec 31, 2024