Howmet Aerospace Inc (HWM)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 10,519,000 | 10,558,000 | 10,679,000 | 10,410,000 | 10,428,000 | 10,166,000 | 10,233,000 | 10,174,000 | 10,255,000 | 9,929,000 | 10,052,000 | 10,129,000 | 10,219,000 | 10,357,000 | 10,379,000 | 10,971,000 | 11,446,000 | 11,339,000 | 11,363,000 | 18,465,000 |
| Total stockholders’ equity | US$ in thousands | 4,554,000 | 4,503,000 | 4,277,000 | 4,086,000 | 4,037,000 | 3,872,000 | 3,775,000 | 3,761,000 | 3,601,000 | 3,273,000 | 3,421,000 | 3,457,000 | 3,508,000 | 3,579,000 | 3,598,000 | 3,662,000 | 3,580,000 | 3,501,000 | 3,449,000 | 4,783,000 |
| Financial leverage ratio | 2.31 | 2.34 | 2.50 | 2.55 | 2.58 | 2.63 | 2.71 | 2.71 | 2.85 | 3.03 | 2.94 | 2.93 | 2.91 | 2.89 | 2.88 | 3.00 | 3.20 | 3.24 | 3.29 | 3.86 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $10,519,000K ÷ $4,554,000K
= 2.31
The financial leverage ratio for Howmet Aerospace Inc has shown a decreasing trend over the period from March 31, 2020, to December 31, 2024. The ratio started at 3.86 on March 31, 2020, and consistently decreased to 2.31 by December 31, 2024.
A higher financial leverage ratio indicates higher financial risk, as it implies that a company is using more debt to finance its operations. Conversely, a lower ratio suggests less reliance on debt financing, which can be seen as a positive indicator of financial stability.
The declining trend in Howmet Aerospace's financial leverage ratio may indicate a strategic shift towards reducing debt levels or improving overall financial health. It could also suggest improved efficiency in managing the company's capital structure or better utilization of resources.
Overall, the decreasing financial leverage ratio for Howmet Aerospace Inc reflects a potentially stronger financial position and lower risk profile over the period under consideration.
Peer comparison
Dec 31, 2024