Howmet Aerospace Inc (HWM)
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 | 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 | 11,443,000 | 11,339,000 | 11,363,000 | 18,465,000 | 17,562,000 | 17,484,000 | 17,913,000 | 18,361,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 3,577,000 | 3,501,000 | 3,449,000 | 4,783,000 | 4,591,000 | 4,696,000 | 4,854,000 | 5,166,000 |
| Financial leverage ratio | 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 | 3.83 | 3.72 | 3.69 | 3.55 |
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 eight quarters, starting at 3.03 in Q3 2022 and gradually decreasing to 2.58 in Q4 2023. This indicates that the company has been reducing its reliance on debt to finance its operations and investments. However, the ratio has been relatively stable around the 2.7 range since Q2 2023, suggesting a consistent level of financial leverage.
A financial leverage ratio of above 1 indicates that the company has more debt than equity in its capital structure. Howmet Aerospace Inc's ratios ranging from 2.58 to 3.03 reflect a higher level of debt relative to equity during this period. It is essential for the company to monitor its financial leverage ratio to ensure it maintains a healthy balance between debt and equity financing to support its growth and financial stability in the long term.
Peer comparison
Dec 31, 2023