Fortune Brands Innovations Inc. (FBIN)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,561,800 | 6,565,000 | 6,120,900 | 7,936,200 | 7,358,700 |
| Total stockholders’ equity | US$ in thousands | 2,422,000 | 2,293,400 | 2,086,900 | 3,064,800 | 2,775,500 |
| Financial leverage ratio | 2.71 | 2.86 | 2.93 | 2.59 | 2.65 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,561,800K ÷ $2,422,000K
= 2.71
The financial leverage ratio of Fortune Brands Innovations Inc. has exhibited slight fluctuations over the past five years. The ratio, which measures the proportion of the company's debt in relation to its equity, was 2.65 as of December 31, 2020, and decreased to 2.59 by the end of 2021. However, there was an increase in the ratio to 2.93 by December 31, 2022, before declining to 2.86 at the end of 2023, and then returning to 2.71 by December 31, 2024.
Overall, the trend in the financial leverage ratio suggests that the company has maintained a moderate level of leverage throughout the period, with a balance between debt and equity financing. Investors and stakeholders may see the fluctuations in the ratio as potential indicators of changes in the company's capital structure and risk profile. Further analysis and comparison with industry benchmarks could provide additional insights into Fortune Brands Innovations Inc.'s financial health and risk management strategies.
Peer comparison
Dec 31, 2024