Littelfuse Inc (LFUS)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,891,780 | 3,995,280 | 3,903,730 | 3,151,700 | 2,747,590 |
| Total stockholders’ equity | US$ in thousands | 2,413,610 | 2,480,170 | 2,211,380 | 1,893,520 | 1,608,770 |
| Financial leverage ratio | 1.61 | 1.61 | 1.77 | 1.66 | 1.71 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,891,780K ÷ $2,413,610K
= 1.61
The financial leverage ratio, which measures the extent to which a company relies on debt financing, for Littelfuse Inc has shown some fluctuations over the past five years.
As of December 31, 2020, the financial leverage ratio stood at 1.71, indicating that the company was financing its operations with a higher proportion of debt compared to equity. By December 31, 2021, the ratio decreased to 1.66, suggesting a slight reduction in the company's reliance on debt financing.
However, in the following years, the financial leverage ratio increased again. As of December 31, 2022, it reached 1.77, signifying an uptick in the company's debt usage. Subsequently, by December 31, 2023, the ratio decreased to 1.61, indicating a potential shift towards a lower reliance on debt financing. The trend continued into December 31, 2024, where the financial leverage ratio remained stable at 1.61.
Overall, the fluctuation in Littelfuse Inc's financial leverage ratio over the years suggests that the company has been adjusting its capital structure by periodically altering the mix of debt and equity in its financing activities.
Peer comparison
Dec 31, 2024