FMC Corporation (FMC)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 11,926,200 | 11,171,300 | 10,673,100 | 10,186,400 | 9,872,700 |
| Total stockholders’ equity | US$ in thousands | 4,410,900 | 3,377,900 | 3,124,300 | 2,961,800 | 2,532,300 |
| Financial leverage ratio | 2.70 | 3.31 | 3.42 | 3.44 | 3.90 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $11,926,200K ÷ $4,410,900K
= 2.70
The financial leverage ratio of FMC Corp. has displayed fluctuations over the past five years. The ratio decreased from 3.90 in 2019 to 3.31 in 2022, indicating a reduction in financial leverage during that period. However, there was an increase in leverage in 2023, with the ratio standing at 2.70.
Comparing the financial leverage ratios across the years, it is evident that FMC Corp. has been working to lower its financial leverage, as indicated by the decreasing trend from 2019 to 2022. However, the latest increase in leverage in 2023 suggests a potential shift in the company's leverage strategy.
Overall, FMC Corp. should continue to monitor its financial leverage ratio to ensure it remains at levels that are sustainable and in line with its strategic financial objectives.
Peer comparison
Dec 31, 2023