Corning Incorporated (GLW)
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 | 28,500,000 | 28,278,000 | 28,645,000 | 28,822,000 | 29,499,000 | 28,735,000 | 29,718,000 | 30,257,000 | 30,154,000 | 29,706,000 | 29,806,000 | 30,143,000 | 30,775,000 | 30,267,000 | 27,546,000 | 27,859,000 | 28,898,000 | 27,329,000 | 27,575,000 | 27,321,000 |
| Total stockholders’ equity | US$ in thousands | 11,551,000 | 11,430,000 | 11,412,000 | 11,925,000 | 12,008,000 | 11,284,000 | 11,734,000 | 12,395,000 | 12,333,000 | 12,145,000 | 11,960,000 | 13,369,000 | 13,257,000 | 12,660,000 | 12,049,000 | 12,198,000 | 12,907,000 | 13,034,000 | 13,425,000 | 13,607,000 |
| Financial leverage ratio | 2.47 | 2.47 | 2.51 | 2.42 | 2.46 | 2.55 | 2.53 | 2.44 | 2.44 | 2.45 | 2.49 | 2.25 | 2.32 | 2.39 | 2.29 | 2.28 | 2.24 | 2.10 | 2.05 | 2.01 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $28,500,000K ÷ $11,551,000K
= 2.47
The financial leverage ratio of Corning, Inc. has shown some fluctuations over the past eight quarters. The ratio ranged from a low of 2.42 in Q1 2023 to a high of 2.55 in Q3 2022, with an average of about 2.48 over this period. A financial leverage ratio of 2.47 in Q4 2023 indicates that the company had $2.47 in total assets for every $1 of equity.
A high financial leverage ratio suggests that a company relies more on debt to finance its operations and investments, which can amplify returns but also increase financial risk. Conversely, a lower ratio indicates a lower level of financial risk but may also limit potential returns.
The stability in the ratio around the 2.47 to 2.55 range indicates that Corning, Inc. has maintained a relatively consistent level of leverage over the past two years. However, investors and analysts should continue to monitor changes in this ratio to assess the company's ability to meet its financial obligations and manage its capital structure effectively.
Peer comparison
Dec 31, 2023