Masco Corporation (MAS)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,363,000 | 5,187,000 | 5,575,000 | 5,777,000 | 5,027,000 |
| Total stockholders’ equity | US$ in thousands | -126,000 | -480,000 | -179,000 | 195,000 | -235,000 |
| Financial leverage ratio | — | — | — | 29.63 | — |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,363,000K ÷ $-126,000K
= —
The financial leverage ratio for Masco Corp. for December 31, 2020, was 29.63. Unfortunately, data for other years is not available in the table provided.
The financial leverage ratio indicates the extent to which a company relies on debt to finance its assets. A higher ratio suggests higher financial leverage and increased risk due to higher debt levels. In the case of Masco Corp., a financial leverage ratio of 29.63 for 2020 implies that the company had a significant amount of debt relative to its assets that year.
It would be beneficial to analyze trend data over multiple years to assess the company's historical leverage position and its ability to manage debt effectively. This ratio is crucial for investors and creditors as it provides insights into the company's financial risk and solvency.
Peer comparison
Dec 31, 2023