LCI Industries (LCII)

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 2,894,740 3,024,960 3,011,980 2,981,340 2,959,320 3,033,810 3,076,400 3,209,370 3,246,910 3,268,970 3,482,700 3,640,720 3,288,090 3,088,180 2,776,180 2,500,470 2,298,030 2,110,680 2,018,270 2,051,210
Total stockholders’ equity US$ in thousands 1,386,890 1,418,320 1,394,410 1,356,880 1,355,040 1,372,140 1,370,900 1,359,510 1,381,010 1,423,560 1,394,360 1,259,250 1,092,880 1,031,140 986,176 959,587 908,326 875,562 816,630 807,803
Financial leverage ratio 2.09 2.13 2.16 2.20 2.18 2.21 2.24 2.36 2.35 2.30 2.50 2.89 3.01 2.99 2.82 2.61 2.53 2.41 2.47 2.54

December 31, 2024 calculation

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

LCI Industries' financial leverage ratio has displayed some fluctuations over the past few years, ranging from a low of 2.09 at the end of December 2024 to a high of 3.01 at the end of December 2021. The financial leverage ratio measures the company's use of debt to finance its operations and investments. A higher ratio indicates a higher level of debt relative to equity.

The trend in LCI Industries' financial leverage ratio shows an increase from 2.54 in March 2020 to 3.01 in December 2021, suggesting a significant rise in the company's debt relative to equity during this period. However, there was a subsequent decline in the ratio to 2.09 by the end of December 2024, indicating a reduction in leverage.

Overall, it is important for stakeholders to monitor the financial leverage ratio closely, as it can provide insights into the company's risk profile and financial stability. A higher ratio may indicate increased financial risk, while a lower ratio may suggest a more conservative capital structure.