Howmet Aerospace Inc (HWM)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 10,428,000 | 10,255,000 | 10,219,000 | 11,443,000 | 17,562,000 |
| Total stockholders’ equity | US$ in thousands | 4,037,000 | 3,601,000 | 3,508,000 | 3,577,000 | 4,591,000 |
| Financial leverage ratio | 2.58 | 2.85 | 2.91 | 3.20 | 3.83 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $10,428,000K ÷ $4,037,000K
= 2.58
The financial leverage ratio of Howmet Aerospace Inc has shown a decreasing trend over the past five years, indicating a declining reliance on debt to finance its operations. The ratio stood at 2.58 in 2023, compared to 2.85 in 2022, 2.91 in 2021, 3.20 in 2020, and 3.82 in 2019. This improvement suggests that the company has been able to reduce its debt levels relative to its equity, potentially enhancing its financial stability and flexibility. A lower financial leverage ratio generally indicates lower financial risk and a stronger ability to weather economic downturns. It appears that Howmet Aerospace Inc has been working towards a more conservative capital structure in recent years.
Peer comparison
Dec 31, 2023