Fortune Brands Innovations Inc. (FBIN)
Financial leverage ratio
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,565,000 | 6,618,100 | 6,873,200 | 5,972,700 | 6,120,900 | 8,415,600 | 8,334,100 | 8,243,000 | 7,936,200 | 7,868,800 | 7,696,000 | 7,482,100 | 7,358,700 | 6,519,000 | 6,332,300 | 6,300,100 | 6,291,300 | 6,285,600 | 6,343,400 | 6,289,200 |
| Total stockholders’ equity | US$ in thousands | 2,293,400 | 2,219,000 | 2,177,100 | 2,082,500 | 2,086,900 | 3,030,100 | 2,952,400 | 2,914,800 | 3,064,800 | 3,054,600 | 3,043,500 | 2,924,400 | 2,775,500 | 2,628,600 | 2,461,800 | 2,357,000 | 2,426,600 | 2,335,400 | 2,343,500 | 2,245,500 |
| Financial leverage ratio | 2.86 | 2.98 | 3.16 | 2.87 | 2.93 | 2.78 | 2.82 | 2.83 | 2.59 | 2.58 | 2.53 | 2.56 | 2.65 | 2.48 | 2.57 | 2.67 | 2.59 | 2.69 | 2.71 | 2.80 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,565,000K ÷ $2,293,400K
= 2.86
Over the 20 quarters presented, Fortune Brands Innovations Inc. has maintained a fluctuating financial leverage ratio, ranging from 2.48 to 3.16. The financial leverage ratio measures the company's use of debt to finance its operations and growth. A higher ratio indicates a higher level of debt relative to equity, suggesting increased financial risk.
In this case, the company's financial leverage ratio has generally remained above 2.5, indicating a significant reliance on debt financing. The highest ratio of 3.16 in June 2023 suggests a peak level of financial leverage during that period, potentially indicating a higher risk level associated with the company's debt obligations.
It is important for stakeholders to closely monitor Fortune Brands Innovations Inc.'s financial leverage ratio, as sustained high levels of leverage could impact the company's financial stability and ability to meet its debt obligations, especially in challenging economic conditions. Additionally, a consistently increasing trend in the ratio may imply a growing financial risk that requires further evaluation and management.
Peer comparison
Dec 31, 2023