FMC Corporation (FMC)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 11,653,300 | 11,926,200 | 11,171,300 | 10,581,300 | 10,186,400 |
| Total stockholders’ equity | US$ in thousands | 4,487,500 | 4,410,900 | 3,400,900 | 3,051,900 | 2,984,200 |
| Financial leverage ratio | 2.60 | 2.70 | 3.28 | 3.47 | 3.41 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $11,653,300K ÷ $4,487,500K
= 2.60
The financial leverage ratio of FMC Corporation has fluctuated over the five-year period, ranging from a high of 3.47 in December 31, 2021, to a low of 2.60 in December 31, 2024. This ratio measures the company's degree of financial leveraging and indicates the proportion of debt in its capital structure relative to equity.
A higher financial leverage ratio suggests that the company is relying more on debt to finance its operations and investments, which can lead to higher financial risk. On the other hand, a lower ratio indicates a more conservative capital structure with lower reliance on debt.
The decreasing trend in FMC Corporation's financial leverage ratio from 3.47 in 2021 to 2.60 in 2024 reflects a potential shift towards a less leveraged position and a stronger equity base. This could signify improved financial stability and reduced risk of default, as the company may be moving towards a more balanced mix of debt and equity in its capital structure.
Overall, monitoring the financial leverage ratio of FMC Corporation provides valuable insights into its capital structure management and financial risk profile over time.
Peer comparison
Dec 31, 2024