Littelfuse Inc (LFUS)
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 | 3,903,640 | 4,062,240 | 3,924,980 | 3,943,460 | 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 |
| Total stockholders’ equity | US$ in thousands | 2,426,420 | 2,572,780 | 2,465,130 | 2,470,980 | 2,480,170 | 2,404,860 | 2,357,250 | 2,307,230 | 2,211,380 | 2,088,890 | 2,051,940 | 2,000,650 | 1,893,520 | 1,821,400 | 1,742,220 | 1,660,610 | 1,608,770 | 1,529,430 | 1,462,300 | 1,476,820 |
| Financial leverage ratio | 1.61 | 1.58 | 1.59 | 1.60 | 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 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,903,640K ÷ $2,426,420K
= 1.61
The financial leverage ratio of Littelfuse Inc has shown a declining trend from 1.77 as of March 31, 2020, to 1.58 as of September 30, 2024. This ratio measures the company's level of debt relative to its equity capital and indicates the extent to which the company relies on debt financing. A higher financial leverage ratio implies higher financial risk and potential financial distress, as the company has a higher proportion of debt in its capital structure.
The decreasing trend in the financial leverage ratio suggests that Littelfuse Inc may be reducing its reliance on debt financing over the years, which could indicate a more conservative financial strategy. Lowering the financial leverage ratio may reduce the company's financial risk and enhance its financial stability. However, it is also important to consider the overall impact of debt reduction on the company's ability to fund growth and investment opportunities in the future.
Overall, the decreasing financial leverage ratio of Littelfuse Inc indicates a potential shift towards a more balanced capital structure and a more conservative financial approach, which may be beneficial for the company's long-term financial health.
Peer comparison
Dec 31, 2024