International Flavors & Fragrances Inc (IFF)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	30,978,000	35,522,000	39,658,000	13,555,000	13,287,400
Total stockholders’ equity	US$ in thousands	14,611,000	17,655,000	21,082,000	6,310,000	6,217,300
Financial leverage ratio		2.12	2.01	1.88	2.15	2.14

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $30,978,000K ÷ $14,611,000K
= 2.12

The financial leverage ratio of International Flavors & Fragrances Inc. has fluctuated over the past five years, ranging from 1.88 to 2.15. The ratio indicates the proportion of the company's debt to its equity, reflecting its reliance on debt financing. A higher ratio suggests a greater level of debt compared to equity, which can increase financial risk but also potentially boost returns through leverage.

In 2023, the financial leverage ratio increased to 2.12 from 2.00 in 2022. This indicates that the company's reliance on debt financing relative to equity slightly increased during the year. It is important for investors and analysts to monitor changes in the financial leverage ratio over time to assess the company's capital structure and financial risk.

Despite the fluctuations in the ratio, International Flavors & Fragrances Inc. has maintained a relatively consistent level of financial leverage over the past five years, with the ratio hovering around 2. This suggests that the company may have a strategic balance between debt and equity financing, leveraging debt to support growth while managing its financial risk effectively.