Itron Inc (ITRI)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,604,260 | 2,378,080 | 2,393,790 | 2,607,020 | 2,707,840 |
| Total stockholders’ equity | US$ in thousands | 1,310,910 | 1,168,470 | 1,116,080 | 816,548 | 776,538 |
| Financial leverage ratio | 1.99 | 2.04 | 2.14 | 3.19 | 3.49 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,604,260K ÷ $1,310,910K
= 1.99
The financial leverage ratio of Itron Inc. has been fluctuating over the past five years. The ratio decreased from 3.49 in 2019 to 1.99 in 2023. This indicates that the company has reduced its reliance on debt to finance its operations and investments. A lower financial leverage ratio suggests that the company is less leveraged and has a lower level of financial risk.
In 2020, the ratio increased sharply to 3.19 but then started to decline gradually over the next three years. Despite the fluctuations, the trend shows a general move towards a lower financial leverage ratio, which can be viewed positively in terms of a more conservative capital structure.
Overall, the decreasing trend in the financial leverage ratio over the period indicates that Itron Inc. has been managing its debt levels effectively and moving towards a more balanced mix of debt and equity to support its operations and growth.
Peer comparison
Dec 31, 2023