Hexcel Corporation (HXL)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,725,600 | 2,918,500 | 2,837,300 | 2,819,400 | 2,917,800 |
| Total stockholders’ equity | US$ in thousands | 1,527,900 | 1,716,500 | 1,554,200 | 1,485,500 | 1,510,200 |
| Financial leverage ratio | 1.78 | 1.70 | 1.83 | 1.90 | 1.93 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,725,600K ÷ $1,527,900K
= 1.78
The financial leverage ratio of Hexcel Corporation has shown a declining trend over the years from 1.93 in December 31, 2020, to 1.78 in December 31, 2024. This indicates that the company has been relying less on debt financing relative to equity to fund its operations and investments. A decreasing financial leverage ratio typically signifies a stronger financial position and lower risk of insolvency. However, it is essential to assess the reason behind the decline in the ratio and consider the overall financial health and strategy of the company before drawing definitive conclusions.
Peer comparison
Dec 31, 2024