Insteel Industries Inc (IIIN)
Financial leverage ratio
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 422,552 | 414,615 | 397,227 | 390,568 | 447,513 | 445,382 | 428,224 | 423,756 | 471,745 | 481,048 | 420,558 | 368,779 | 390,710 | 371,931 | 336,861 | 309,951 | 337,902 | 336,690 | 319,035 | 306,451 |
| Total stockholders’ equity | US$ in thousands | 350,855 | 346,015 | 340,621 | 333,595 | 381,505 | 375,066 | 364,978 | 360,674 | 389,744 | 364,924 | 325,147 | 286,020 | 302,038 | 276,996 | 258,736 | 243,734 | 264,803 | 257,066 | 250,831 | 246,180 |
| Financial leverage ratio | 1.20 | 1.20 | 1.17 | 1.17 | 1.17 | 1.19 | 1.17 | 1.17 | 1.21 | 1.32 | 1.29 | 1.29 | 1.29 | 1.34 | 1.30 | 1.27 | 1.28 | 1.31 | 1.27 | 1.24 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $422,552K ÷ $350,855K
= 1.20
The financial leverage ratio of Insteel Industries Inc has shown some fluctuations over the past few quarters. The ratio has ranged from 1.17 to 1.34, indicating changes in the company's capital structure and debt levels.
A financial leverage ratio of 1.20 to 1.21 suggests that the company has a moderate level of debt relative to its equity, which can imply a healthy balance between debt and equity financing. However, the ratios above 1.29 show increased leverage, which may raise concerns about the company's ability to meet its debt obligations.
The upward trend in the financial leverage ratio from 1.17 to 1.34 over the quarters indicates that the company has been increasing its debt levels in comparison to its equity. This could potentially magnify the company's financial risks and impact its overall financial health if not managed properly.
It is essential for stakeholders to closely monitor Insteel Industries Inc's financial leverage ratio and assess its implications on the company's long-term sustainability and financial performance.
Peer comparison
Sep 30, 2024