FMC Corporation (FMC)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 11,653,300 | 12,218,700 | 12,130,700 | 11,978,400 | 11,926,200 | 10,956,400 | 11,951,700 | 11,732,100 | 11,171,300 | 10,764,700 | 11,044,200 | 10,904,800 | 10,581,300 | 10,410,200 | 10,942,100 | 10,423,300 | 10,186,400 | 9,772,200 | 9,993,700 | 10,189,200 |
| Total stockholders’ equity | US$ in thousands | 4,487,500 | 4,607,800 | 4,559,400 | 4,311,500 | 4,410,900 | 3,314,500 | 3,377,400 | 3,494,500 | 3,400,900 | 3,203,600 | 3,127,300 | 3,082,200 | 3,051,900 | 3,057,000 | 3,134,100 | 3,031,300 | 2,984,200 | 2,968,400 | 2,850,900 | 2,702,700 |
| Financial leverage ratio | 2.60 | 2.65 | 2.66 | 2.78 | 2.70 | 3.31 | 3.54 | 3.36 | 3.28 | 3.36 | 3.53 | 3.54 | 3.47 | 3.41 | 3.49 | 3.44 | 3.41 | 3.29 | 3.51 | 3.77 |
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 shown some fluctuations over the analyzed period from March 2020 to December 2024. The ratio, which measures the extent of a company's reliance on debt financing, ranged between 2.60 and 3.77 during this time frame.
From March 2020 to June 2022, the financial leverage ratio remained relatively stable, hovering around 3.50. However, starting from September 2022, the ratio began to decline steadily, reaching 2.60 by December 2024.
A high financial leverage ratio indicates that a company is heavily reliant on debt to finance its operations, which can increase the risk of financial distress, especially during economic downturns. On the other hand, a low financial leverage ratio suggests a more conservative capital structure with a lower risk of default.
The decreasing trend in FMC Corporation's financial leverage ratio from September 2022 to December 2024 may indicate a shift towards a more conservative capital structure, potentially reducing the company's overall financial risk. This could be due to various reasons such as a focus on deleveraging or improved profitability leading to reduced reliance on debt financing.
Peer comparison
Dec 31, 2024