Graco Inc (GGG)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,139,210 | 2,722,010 | 2,438,900 | 2,443,200 | 1,988,130 |
| Total stockholders’ equity | US$ in thousands | 2,584,140 | 2,224,220 | 1,859,650 | 1,709,340 | 1,283,900 |
| Financial leverage ratio | 1.21 | 1.22 | 1.31 | 1.43 | 1.55 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,139,210K ÷ $2,584,140K
= 1.21
The financial leverage ratio of Graco Inc has been showing a declining trend over the past five years, decreasing from 1.55 in December 2020 to 1.21 in December 2024. This indicates that the company is relying less on debt to finance its operations and investments compared to its equity. A decreasing trend in the financial leverage ratio can be seen as a positive sign, as it reduces the financial risk associated with higher levels of debt. It suggests that Graco Inc may be managing its capital structure effectively by maintaining a more conservative approach towards debt financing. However, it is important for the company to strike a balance between debt and equity to ensure sustainable growth and profitability in the long term.
Peer comparison
Dec 31, 2024