Flowserve Corporation (FLS)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,500,820 | 5,108,720 | 4,790,630 | 4,749,770 | 5,314,680 |
| Total stockholders’ equity | US$ in thousands | 2,007,660 | 1,936,100 | 1,824,990 | 1,804,320 | 1,732,470 |
| Financial leverage ratio | 2.74 | 2.64 | 2.63 | 2.63 | 3.07 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,500,820K ÷ $2,007,660K
= 2.74
Flowserve Corporation's financial leverage ratio has shown a downward trend from 3.07 in December 31, 2020, to 2.74 in December 31, 2024. This indicates a decrease in the company's reliance on debt financing over the years, which can be a positive sign for investors as it suggests a lower risk of financial distress. However, it is important to consider the reasons behind this decrease in leverage and assess how it may impact the company's growth and profitability in the future. Overall, the declining trend in the financial leverage ratio reflects a potentially healthier balance sheet and financial stability for Flowserve Corporation.
Peer comparison
Dec 31, 2024