Acushnet Holdings Corp (GOLF)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,180,210 | 2,196,680 | 2,193,810 | 2,005,840 | 1,866,560 |
| Total stockholders’ equity | US$ in thousands | 765,247 | 864,235 | 939,056 | 1,042,840 | 984,075 |
| Financial leverage ratio | 2.85 | 2.54 | 2.34 | 1.92 | 1.90 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,180,210K ÷ $765,247K
= 2.85
The financial leverage ratio of Acushnet Holdings Corp has been gradually increasing over the past five years. From 1.90 in December 2020, it slightly rose to 1.92 by December 2021. However, there was a more notable increase to 2.34 by December 2022, followed by a further rise to 2.54 by December 2023, and eventually reaching 2.85 by December 2024.
This trend indicates that the company has been relying more on debt to finance its operations and investments over time. A higher financial leverage ratio suggests higher financial risk, as the company has more debt in its capital structure compared to equity. It also implies that the company may be more vulnerable to economic downturns or other adverse conditions since it has a higher level of debt obligations to meet.
It would be crucial for Acushnet Holdings Corp to carefully manage its debt levels and ensure that it can comfortably service its debt obligations to maintain financial stability and sustainability in the long run. Monitoring the trend of the financial leverage ratio and considering potential debt reduction strategies may be important for the company's financial health and risk management going forward.
Peer comparison
Dec 31, 2024