Hexcel Corporation (HXL)

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	2,725,600	2,862,300	2,827,600	2,821,200	2,918,500	2,846,300	2,921,900	2,907,300	2,837,300	2,775,700	2,819,400	2,853,500	2,819,400	2,872,600	2,917,400	2,893,500	2,917,800	2,972,100	3,222,500	3,433,300
Total stockholders’ equity	US$ in thousands	1,527,900	1,589,500	1,571,200	1,632,100	1,716,500	1,646,300	1,666,100	1,622,200	1,554,200	1,445,000	1,480,300	1,487,100	1,485,500	1,494,300	1,502,800	1,486,900	1,510,200	1,499,400	1,436,900	1,421,100
Financial leverage ratio		1.78	1.80	1.80	1.73	1.70	1.73	1.75	1.79	1.83	1.92	1.90	1.92	1.90	1.92	1.94	1.95	1.93	1.98	2.24	2.42

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 been showing a decreasing trend from March 31, 2020, to December 31, 2024. This ratio measures the proportion of the company's debt to its equity and indicates the level of financial risk the company is taking on.

The decreasing trend in the financial leverage ratio suggests that Hexcel Corporation has been reducing its reliance on debt to finance its operations and investments over the years. This could indicate a more conservative financial strategy, which may reduce the company's financial risk and improve its financial stability.

Overall, the decreasing financial leverage ratio of Hexcel Corporation signals a positive trend in terms of managing its debt levels and maintaining a healthy balance between debt and equity in its capital structure.