Innospec Inc (IOSP)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,707,400 | 1,603,700 | 1,570,900 | 1,397,400 | 1,468,800 |
| Total stockholders’ equity | US$ in thousands | 1,147,100 | 1,038,000 | 1,032,400 | 944,400 | -74,400 |
| Financial leverage ratio | 1.49 | 1.54 | 1.52 | 1.48 | — |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,707,400K ÷ $1,147,100K
= 1.49
The financial leverage ratio of Innospec Inc has shown a fluctuating trend over the past five years, ranging from 1.48 to 1.60. The ratio decreased from 1.60 in 2019 to 1.48 in 2020, indicating a reduction in the company's reliance on debt financing relative to equity. However, the ratio increased again in 2021 to 1.52 and then to 1.54 in 2022, before slightly decreasing to 1.49 in 2023.
A financial leverage ratio above 1 suggests that the company has more debt in its capital structure than equity. Therefore, Innospec Inc has been moderately leveraged over the years, with a ratio consistently above 1. This indicates that the company has been utilizing debt to finance a portion of its operations and investments.
Overall, the trend in Innospec Inc's financial leverage ratio indicates fluctuations in the company's capital structure, with varying levels of reliance on debt financing over the years. Additionally, the company's ability to manage its debt levels effectively may be an important aspect to monitor for investors and stakeholders.
Peer comparison
Dec 31, 2023