Flowserve Corporation (FLS)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,108,720 | 4,790,630 | 4,749,770 | 5,314,680 | 4,938,280 |
| Total stockholders’ equity | US$ in thousands | 1,936,100 | 1,824,990 | 1,804,320 | 1,730,990 | 1,746,740 |
| Financial leverage ratio | 2.64 | 2.63 | 2.63 | 3.07 | 2.83 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,108,720K ÷ $1,936,100K
= 2.64
The financial leverage ratio of Flowserve Corp. has shown variability over the past five years. The ratio measures how much debt a company uses to finance its assets relative to its equity. A higher financial leverage ratio indicates higher financial risk due to a larger proportion of debt in the company's capital structure.
The ratio for Flowserve Corp. was 2.64 in 2023, slightly higher compared to 2.63 in 2022 and 2021. This indicates a relatively stable debt-to-equity mix in recent years. However, the ratio was notably higher in 2020 at 3.07, suggesting a higher level of indebtedness that year. The ratio then decreased to 2.75 in 2019, showing a reduction in financial leverage compared to 2020.
Overall, the financial leverage ratio of Flowserve Corp. has fluctuated within a moderate range over the past five years. Investors and stakeholders may monitor this ratio to assess the company's ability to meet its financial obligations and manage its debt levels effectively.
Peer comparison
Dec 31, 2023