Griffon Corporation (GFF)
Financial leverage ratio
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,370,950 | 2,378,860 | 2,423,730 | 2,393,310 | 2,418,880 | 2,571,220 | 2,660,160 | 2,777,240 | 2,816,470 | 3,504,230 | 3,787,020 | 2,582,740 | 2,604,680 | 2,548,660 | 2,524,280 | 2,484,440 | 2,448,590 | 2,310,220 | 2,318,750 | 2,257,800 |
| Total stockholders’ equity | US$ in thousands | 224,888 | 223,510 | 202,186 | 285,022 | 315,244 | 335,706 | 468,311 | 526,848 | 477,570 | 906,315 | 883,214 | 812,385 | 807,158 | 785,341 | 764,431 | 740,047 | 700,151 | 508,455 | 476,454 | 494,693 |
| Financial leverage ratio | 10.54 | 10.64 | 11.99 | 8.40 | 7.67 | 7.66 | 5.68 | 5.27 | 5.90 | 3.87 | 4.29 | 3.18 | 3.23 | 3.25 | 3.30 | 3.36 | 3.50 | 4.54 | 4.87 | 4.56 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,370,950K ÷ $224,888K
= 10.54
The financial leverage ratio of Griffon Corporation has shown fluctuations over the past few quarters. The ratio has ranged from a low of 3.18 in March 2022 to a high of 11.99 in March 2024. This indicates that the company's level of debt relative to its equity has varied significantly during this period.
In general, a higher financial leverage ratio suggests that the company is relying more on debt to finance its operations, which can potentially increase financial risk. On the other hand, a lower ratio indicates a lower level of debt relative to equity, which may be seen as less risky.
It is important for investors and analysts to monitor changes in the financial leverage ratio over time to assess the company's ability to meet its financial obligations and manage its debt levels effectively. Additionally, changes in the ratio can provide insights into the company's capital structure and overall financial health.