LCI Industries (LCII)

Financial leverage ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total assets US$ in thousands 2,894,740 2,959,320 3,246,910 3,288,090 2,298,030
Total stockholders’ equity US$ in thousands 1,386,890 1,355,040 1,381,010 1,092,880 908,326
Financial leverage ratio 2.09 2.18 2.35 3.01 2.53

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,894,740K ÷ $1,386,890K
= 2.09

The financial leverage ratio of LCI Industries has shown fluctuations over the past five years. Starting at 2.53 in December 31, 2020, the ratio increased to 3.01 by December 31, 2021. However, in subsequent years, there was a decreasing trend with the ratio dropping to 2.35 by December 31, 2022, 2.18 by December 31, 2023, and then to 2.09 by December 31, 2024. Overall, the trend indicates that the company's reliance on debt to finance its operations has reduced, potentially signaling a more conservative approach to capital structure management.