Graco Inc (GGG)
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 | 2,722,010 | 2,674,920 | 2,707,720 | 2,546,260 | 2,438,900 | 2,438,200 | 2,404,280 | 2,319,440 | 2,443,200 | 2,377,330 | 2,229,200 | 2,087,720 | 1,988,130 | 1,994,000 | 1,962,460 | 1,947,340 | 1,692,210 | 1,637,420 | 1,640,550 | 1,549,050 |
| Total stockholders’ equity | US$ in thousands | 2,224,220 | 2,188,530 | 2,116,310 | 1,986,340 | 1,859,650 | 1,788,310 | -94,913 | -82,429 | 1,709,340 | 1,564,350 | 1,481,260 | 1,382,500 | 1,283,900 | 1,165,940 | 1,026,970 | 1,018,660 | 1,024,930 | 983,796 | 925,958 | 844,438 |
| Financial leverage ratio | 1.22 | 1.22 | 1.28 | 1.28 | 1.31 | 1.36 | — | — | 1.43 | 1.52 | 1.50 | 1.51 | 1.55 | 1.71 | 1.91 | 1.91 | 1.65 | 1.66 | 1.77 | 1.83 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,722,010K ÷ $2,224,220K
= 1.22
The financial leverage ratio of Graco Inc has fluctuated over the periods provided. The ratio indicates the company's level of debt relative to its equity. A higher ratio suggests higher financial risk due to increased reliance on debt financing, while a lower ratio indicates a more conservative capital structure.
From the data, we can see that the financial leverage ratio has ranged from 1.22 to 1.91 over the past few quarters, with some significant variations. The ratios above 1 suggest that the company has more debt than equity in its capital structure.
The trend indicates that Graco Inc's financial leverage has been increasing over time, as seen by the higher ratios in more recent periods. This suggests that the company may be taking on more debt to finance its operations or growth. It is important for investors and stakeholders to closely monitor this trend to assess the company's ability to manage its debt levels effectively and ensure financial stability in the long term.
Peer comparison
Dec 31, 2023