Fortune Brands Innovations Inc. (FBIN)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,565,000 | 6,120,900 | 7,936,200 | 7,358,700 | 6,291,300 |
| Total stockholders’ equity | US$ in thousands | 2,293,400 | 2,086,900 | 3,064,800 | 2,775,500 | 2,426,600 |
| Financial leverage ratio | 2.86 | 2.93 | 2.59 | 2.65 | 2.59 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,565,000K ÷ $2,293,400K
= 2.86
Fortune Brands Innovations Inc.'s financial leverage ratio has shown some fluctuations over the past five years. The ratio was 2.59 in both 2019 and 2021, indicating a stable level of leverage in those years. In 2020, the ratio increased slightly to 2.65 before decreasing to 2.59 again in 2021. However, there was a more noticeable increase to 2.93 in 2022, reflecting a higher level of financial leverage.
In the most recent year, 2023, the financial leverage ratio further increased to 2.86. This suggests that the company has increased its reliance on debt financing compared to the previous year. A higher financial leverage ratio indicates a greater proportion of debt in the company's capital structure, which can amplify returns but also increase financial risk.
Overall, Fortune Brands Innovations Inc.'s financial leverage has shown some variability in recent years, with the ratio fluctuating between 2.59 and 2.93. It would be important for stakeholders to closely monitor the company's debt levels and assess the potential impacts on its financial stability and performance.
Peer comparison
Dec 31, 2023