John Bean Technologies Corporation (JBT)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,710,400 | 2,641,000 | 2,141,400 | 1,805,900 | 1,914,900 |
| Total stockholders’ equity | US$ in thousands | 1,488,900 | 905,400 | 750,500 | 637,100 | 569,500 |
| Financial leverage ratio | 1.82 | 2.92 | 2.85 | 2.83 | 3.36 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,710,400K ÷ $1,488,900K
= 1.82
The financial leverage ratio measures the extent to which a company relies on debt to finance its operations and growth. John Bean Technologies Corp's financial leverage ratio has fluctuated over the past five years, indicating changes in the company's debt levels relative to its equity.
In 2023, the financial leverage ratio decreased to 1.82 from 3.00 in 2022. This decrease suggests that John Bean Technologies Corp reduced its reliance on debt financing compared to the previous year. A lower financial leverage ratio generally indicates a lower financial risk, as the company is less dependent on borrowed funds.
Comparing the financial leverage ratio to previous years, we observe a downward trend from 2019 to 2023. This trend indicates that the company has been gradually reducing its debt levels relative to equity over the period. The decline in the ratio may imply improved financial stability and a stronger capital structure, as the company has been relying less on debt to support its operations.
Overall, John Bean Technologies Corp's decreasing financial leverage ratio over the years signifies a positive shift towards a more balanced capital structure with reduced dependence on debt financing. However, further analysis of the company's overall financial health and performance is recommended to better understand the implications of these changes in the financial leverage ratio.
Peer comparison
Dec 31, 2023