ITT Inc (ITT)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,710,700 | 3,932,600 | 3,780,300 | 3,565,400 | 4,277,600 |
| Total stockholders’ equity | US$ in thousands | 2,762,600 | 2,528,200 | 2,248,100 | 2,225,800 | 2,126,400 |
| Financial leverage ratio | 1.71 | 1.56 | 1.68 | 1.60 | 2.01 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,710,700K ÷ $2,762,600K
= 1.71
The financial leverage ratio of ITT Inc has shown some fluctuations over the past five years.
- In December 31, 2020, the ratio stood at 2.01, indicating that the company had a higher level of financial leverage, implying a higher proportion of debt in its capital structure compared to equity.
- By December 31, 2021, the financial leverage ratio decreased to 1.60, suggesting that the company reduced its reliance on debt financing, which could reduce financial risk.
- In December 31, 2022, the ratio slightly increased to 1.68, indicating a moderate uptick in the company's leverage compared to the previous year.
- By December 31, 2023, the financial leverage ratio decreased further to 1.56, which may imply a more conservative capital structure or a reduced level of debt.
- As of December 31, 2024, the ratio increased again to 1.71, indicating a slight increase in financial leverage compared to the previous year.
Overall, the fluctuations in ITT Inc's financial leverage ratio over the analyzed period suggest that the company has actively managed its capital structure, adjusting its debt levels relative to equity. It is essential for stakeholders to monitor these changes to assess the company's financial risk and its ability to meet its financial obligations.
Peer comparison
Dec 31, 2024