Ingredion Incorporated (INGR)
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 | 7,444,000 | 7,525,000 | 7,221,000 | 7,319,000 | 7,642,000 | 7,549,000 | 7,600,000 | 7,645,000 | 7,561,000 | 7,403,000 | 7,389,000 | 7,435,000 | 6,999,000 | 6,986,000 | 7,098,000 | 6,803,000 | 6,858,000 | 6,464,000 | 6,611,000 | 5,952,000 |
| Total stockholders’ equity | US$ in thousands | 3,864,000 | 4,004,000 | 3,705,000 | 3,724,000 | 3,593,000 | 3,413,000 | 3,420,000 | 3,301,000 | 3,195,000 | 3,109,000 | 3,183,000 | 3,324,000 | 3,136,000 | 3,116,000 | 2,850,000 | 2,658,000 | 2,981,000 | 2,744,000 | 2,646,000 | 2,606,000 |
| Financial leverage ratio | 1.93 | 1.88 | 1.95 | 1.97 | 2.13 | 2.21 | 2.22 | 2.32 | 2.37 | 2.38 | 2.32 | 2.24 | 2.23 | 2.24 | 2.49 | 2.56 | 2.30 | 2.36 | 2.50 | 2.28 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,444,000K ÷ $3,864,000K
= 1.93
Ingredion Incorporated's financial leverage ratio has shown fluctuations over the past few years. The ratio, which indicates the company's level of debt relative to its equity, ranged between 1.88 and 2.56 during the period from March 31, 2020, to December 31, 2024.
The ratio experienced a downward trend from the peak of 2.56 on March 31, 2021, gradually decreasing to 1.88 on September 30, 2024. This decline may suggest that the company reduced its reliance on debt financing and improved its financial health by either paying down debt or increasing equity.
Although a lower financial leverage ratio is generally considered favorable in terms of reducing financial risk and increasing solvency, it's essential to note that too low of a ratio could indicate underutilization of debt for potential business growth opportunities. Therefore, monitoring the trend and level of the financial leverage ratio is crucial for assessing the company's capital structure efficiency and risk management strategies.
Peer comparison
Dec 31, 2024