Littelfuse Inc (LFUS)
Financial leverage ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,995,280 | 4,002,930 | 3,975,710 | 3,961,740 | 3,903,730 | 3,777,930 | 3,544,470 | 3,193,170 | 3,151,700 | 3,038,520 | 2,927,500 | 2,786,870 | 2,747,590 | 2,654,370 | 2,611,060 | 2,612,630 | 2,559,900 | 2,551,360 | 2,621,580 | 2,625,020 |
| Total stockholders’ equity | US$ in thousands | 2,480,170 | 2,404,510 | 2,356,960 | 2,307,230 | 2,211,190 | 2,088,720 | 2,051,810 | 2,000,520 | 1,893,390 | 1,821,270 | 1,742,090 | 1,660,610 | 1,608,640 | 1,529,430 | 1,462,300 | 1,476,820 | 1,495,880 | 1,472,080 | 1,509,810 | 1,505,260 |
| Financial leverage ratio | 1.61 | 1.66 | 1.69 | 1.72 | 1.77 | 1.81 | 1.73 | 1.60 | 1.66 | 1.67 | 1.68 | 1.68 | 1.71 | 1.74 | 1.79 | 1.77 | 1.71 | 1.73 | 1.74 | 1.74 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,995,280K ÷ $2,480,170K
= 1.61
The financial leverage ratio of Littelfuse Inc has exhibited a fluctuating trend over the past few quarters. The ratio indicates the extent to which the company relies on debt financing versus equity to fund its operations and growth. A higher financial leverage ratio implies a greater reliance on debt, which can increase financial risk but also potentially enhance returns.
From the data provided, we observe that the financial leverage ratio has varied between 1.60 and 1.81 over the past few quarters. The ratio peaked at 1.81 in September 2022 and has since exhibited a somewhat declining trend, reaching 1.61 in December 2023. This decrease could suggest a reduction in the company's reliance on debt financing or an increase in equity relative to debt in its capital structure.
Overall, it's essential to monitor the financial leverage ratio closely to assess the company's capital structure and risk profile. Fluctuations in this ratio may indicate changes in the company's financing decisions, profitability, or overall financial health.
Peer comparison
Dec 31, 2023