Howmet Aerospace Inc (HWM)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 10,519,000 | 10,428,000 | 10,255,000 | 10,219,000 | 11,446,000 |
| Total stockholders’ equity | US$ in thousands | 4,554,000 | 4,037,000 | 3,601,000 | 3,508,000 | 3,580,000 |
| Financial leverage ratio | 2.31 | 2.58 | 2.85 | 2.91 | 3.20 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $10,519,000K ÷ $4,554,000K
= 2.31
The financial leverage ratio of Howmet Aerospace Inc has exhibited a downward trend over the five-year period from December 31, 2020, to December 31, 2024. The ratio decreased from 3.20 in 2020 to 2.31 in 2024, indicating a reduction in the company's reliance on debt financing relative to its equity. This trend suggests that Howmet Aerospace has been gradually adjusting its capital structure to a more conservative level, which may lead to lower financial risk and improved financial stability. A decreasing financial leverage ratio can also signal improved solvency and liquidity, as the company may be relying more on internal resources rather than external debt to fund its operations and growth initiatives. Overall, the declining trend in the financial leverage ratio for Howmet Aerospace Inc reflects a positive trajectory in terms of its capital structure management.
Peer comparison
Dec 31, 2024