ITT Inc (ITT)
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 | 4,710,700 | 4,944,500 | 4,410,300 | 4,403,700 | 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 |
| Total stockholders’ equity | US$ in thousands | 2,762,600 | 2,749,200 | 2,576,600 | 2,574,700 | 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 |
| Financial leverage ratio | 1.71 | 1.80 | 1.71 | 1.71 | 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 |
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 period from March 31, 2020, to December 31, 2024.
The ratio decreased from 2.13 on March 31, 2020, to 1.60 on December 31, 2021, indicating a reduction in the company's reliance on debt to finance its operations.
However, starting from March 31, 2022, the ratio started to increase gradually, reaching 1.80 on September 30, 2024. This uptrend suggests that ITT Inc may have started to increase its debt levels again to support its growth or investment activities.
Overall, analyzing the financial leverage ratio trend shows that ITT Inc has managed its leverage effectively, reducing it initially and then increasing it gradually over the period under review. This indicates a balanced approach to capital structure management, aiming to optimize financial risk and return for the company and its shareholders.
Peer comparison
Dec 31, 2024