JBTMarel Corp (JBTM)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,413,800 | 2,710,400 | 2,641,000 | 2,141,400 | 1,805,900 |
| Total stockholders’ equity | US$ in thousands | 1,544,200 | 1,488,900 | 905,400 | 750,200 | 637,100 |
| Financial leverage ratio | 2.21 | 1.82 | 2.92 | 2.85 | 2.83 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,413,800K ÷ $1,544,200K
= 2.21
The financial leverage ratio of JBTMarel Corp has demonstrated notable fluctuations over the period from December 31, 2020, to December 31, 2024. At the end of 2020, the ratio stood at 2.83, indicating that the company's total assets were approximately 2.83 times its shareholders' equity, reflecting a moderate level of leverage. This ratio experienced a slight increase in 2021 and 2022, reaching 2.85 and 2.92 respectively, which may suggest a marginal increase in the firm's reliance on debt financing or a relative decrease in equity base during that period.
However, a significant decrease is observed by the end of 2023, when the leverage ratio declined sharply to 1.82. This reduction indicates that the company's total assets relative to shareholders' equity diminished, possibly due to debt repayment, equity issuance, or a combination of both. The decrease signifies a reduction in financial risk and a more conservative leverage stance during that year.
Subsequently, in 2024, the ratio increased again to 2.21, suggesting a partial reversal of the previous year's reduction in leverage. This uptick may be attributable to increased borrowing, asset growth funded through debt, or a reduction in equity.
Overall, the trend illustrates a period of relatively stable leverage in the early years, followed by a significant reduction in leverage at the end of 2023, with a subsequent moderate increase in 2024. The fluctuations reflect the company's dynamic capital structure management and may influence its financial risk profile, cost of capital, and flexibility in pursuing growth opportunities.
Peer comparison
Dec 31, 2024