Element Solutions Inc (ESI)
Financial leverage ratio
| Mar 31, 2025 | Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,794,600 | 4,873,900 | 5,098,200 | 4,982,400 | 4,912,200 | 4,974,100 | 4,968,800 | 5,061,000 | 4,926,500 | 4,903,700 | 4,869,700 | 5,009,700 | 5,128,800 | 5,138,400 | 5,182,900 | 4,643,800 | 4,476,700 | 4,483,400 | 4,326,800 | 4,218,700 |
| Total stockholders’ equity | US$ in thousands | 2,519,800 | 2,383,000 | 2,439,300 | 2,373,100 | 2,323,700 | 2,328,500 | 2,230,200 | 2,303,500 | 2,354,700 | 2,332,500 | 2,288,100 | 2,398,200 | 2,494,900 | 2,480,700 | 2,479,600 | 2,470,000 | 2,349,500 | 2,319,800 | 2,244,600 | 2,156,800 |
| Financial leverage ratio | 1.90 | 2.05 | 2.09 | 2.10 | 2.11 | 2.14 | 2.23 | 2.20 | 2.09 | 2.10 | 2.13 | 2.09 | 2.06 | 2.07 | 2.09 | 1.88 | 1.91 | 1.93 | 1.93 | 1.96 |
March 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,794,600K ÷ $2,519,800K
= 1.90
The financial leverage ratio of Element Solutions Inc. demonstrates a relatively stable yet gradually increasing trend over the observed period from June 2020 to March 2025. Initially, the ratio stood at 1.96 on June 30, 2020, and experienced minor fluctuations, predominantly declining slightly in late 2020 and early 2021, reaching a low of approximately 1.91 in March 2021. Subsequently, the leverage ratio exhibited a notable upward movement starting in September 2021, peaking at 2.23 in September 2023.
Throughout this period, the ratio has remained within a range of approximately 1.90 to 2.23, indicating moderate financial leverage. This consistency suggests a prudent approach to leveraging debt relative to equity, with the company maintaining a balanced capital structure that avoids excessive reliance on debt financing. The increase in leverage ratio during the latter part of the period signals a slight shift towards more debt relative to equity, but it remains within a moderate and manageable level.
Overall, the stability and gradual growth in the financial leverage ratio imply that Element Solutions Inc. effectively manages its financial risks associated with leverage. The data indicates a cautious but increasing leverage stance, which, if maintained prudently, could support growth initiatives without substantially elevating financial risk.
Peer comparison
Mar 31, 2025