FMC Corporation (FMC)
Financial leverage ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 11,926,200 | 10,956,400 | 11,951,700 | 11,732,100 | 11,171,300 | 10,764,700 | 11,044,200 | 10,904,800 | 10,673,100 | 10,410,200 | 10,942,100 | 10,423,300 | 10,186,400 | 9,772,200 | 9,993,700 | 10,189,200 | 9,872,700 | 9,803,800 | 9,824,500 | 9,946,000 |
| Total stockholders’ equity | US$ in thousands | 4,410,900 | 3,290,900 | 3,353,000 | 3,470,700 | 3,377,900 | 3,188,200 | 3,108,500 | 3,059,100 | 3,124,300 | 3,031,400 | 3,110,700 | 3,008,600 | 2,961,800 | 2,944,500 | 2,822,200 | 2,675,400 | 2,532,300 | 2,649,200 | 2,763,600 | 2,761,000 |
| Financial leverage ratio | 2.70 | 3.33 | 3.56 | 3.38 | 3.31 | 3.38 | 3.55 | 3.56 | 3.42 | 3.43 | 3.52 | 3.46 | 3.44 | 3.32 | 3.54 | 3.81 | 3.90 | 3.70 | 3.55 | 3.60 |
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 been fluctuating over the past eight quarters. It ranged between 2.70 and 3.56, with Q2 and Q1 of 2023 showing the highest leverage ratios of 3.56 and 3.38, respectively. These high leverage ratios suggest that FMC Corp. has been relying more on debt to finance its operations and investments during those periods.
In contrast, Q4 of 2023 had a lower leverage ratio of 2.70, indicating a potentially reduced reliance on debt financing. This shift could be due to several factors, such as changes in capital structure, debt repayment, or increased equity financing.
Overall, monitoring the financial leverage ratio of FMC Corp. is essential for understanding its capital structure and risk profile. A higher leverage ratio indicates higher financial risk, as the company may struggle to meet its debt obligations in adverse conditions. Conversely, a lower ratio suggests a healthier financial position with less reliance on debt. Investors and stakeholders should continue to evaluate FMC Corp.'s leverage ratio trends to assess its financial health and risk exposure.
Peer comparison
Dec 31, 2023