ITT Inc (ITT)
Financial leverage ratio
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,932,600 | 3,802,300 | 3,885,400 | 3,767,800 | 3,780,300 | 3,690,200 | 3,699,900 | 3,725,600 | 3,565,400 | 3,454,200 | 3,462,300 | 4,179,700 | 4,277,600 | 4,176,400 | 4,151,300 | 4,276,600 | 4,107,700 | 4,064,200 | 4,041,400 | 3,937,100 |
| Total stockholders’ equity | US$ in thousands | 2,528,200 | 2,409,100 | 2,346,900 | 2,299,200 | 2,248,100 | 2,057,000 | 2,008,300 | 2,084,900 | 2,225,800 | 2,143,000 | 2,138,200 | 2,106,100 | 2,126,400 | 2,020,900 | 2,051,800 | 2,012,400 | 2,074,900 | 1,997,600 | 1,935,200 | 1,868,600 |
| Financial leverage ratio | 1.56 | 1.58 | 1.66 | 1.64 | 1.68 | 1.79 | 1.84 | 1.79 | 1.60 | 1.61 | 1.62 | 1.98 | 2.01 | 2.07 | 2.02 | 2.13 | 1.98 | 2.03 | 2.09 | 2.11 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,932,600K ÷ $2,528,200K
= 1.56
The financial leverage ratio of ITT Inc has shown a fluctuating trend over the past eight quarters, ranging from a low of 1.56 in Q4 2023 to a high of 1.84 in Q2 2022. The ratio measures the company's level of debt relative to its equity, indicating the extent to which it relies on debt financing. A higher ratio suggests a higher level of debt compared to equity, indicating higher financial risk.
The decreasing trend from Q2 2022 to Q4 2023 indicates a potential decrease in the company's reliance on debt financing or an increase in equity. This could be a positive sign as it may signify a more conservative financial structure and lower financial risk. However, the ratio remains relatively high, indicating that ITT Inc still carries a significant amount of debt in its capital structure.
It is important for investors and stakeholders to monitor the financial leverage ratio of ITT Inc closely to assess the company's ability to meet its debt obligations and manage its financial risk effectively. Further analysis of the company's overall financial health and performance is recommended to gain a comprehensive understanding of its leverage position.
Peer comparison
Dec 31, 2023