Callaway Golf Company (MODG)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 9,120,600 | 8,590,400 | 7,747,800 | 1,980,600 | 1,960,550 |
| Total stockholders’ equity | US$ in thousands | 3,878,200 | 3,774,300 | 3,682,900 | 675,644 | 767,353 |
| Financial leverage ratio | 2.35 | 2.28 | 2.10 | 2.93 | 2.55 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,120,600K ÷ $3,878,200K
= 2.35
The financial leverage ratio of Topgolf Callaway Brands Corp has fluctuated over the past five years, ranging from 2.10 to 2.93. A higher financial leverage ratio indicates that a company relies more on debt financing to support its operations and growth, compared to equity.
In 2020, the company had a relatively high financial leverage ratio of 2.93, suggesting a significant proportion of debt in its capital structure. This may pose higher financial risk due to potential difficulties in meeting debt obligations, especially during economic downturns.
On the other hand, in 2021, the financial leverage ratio decreased to 2.10, indicating a lower reliance on debt financing compared to the previous year. This could signal a conservative approach to managing financial risk and a shift towards a more balanced capital structure.
In subsequent years, the financial leverage ratio increased to 2.28 in 2022 and then further to 2.35 in 2023. These increases suggest a gradual return to a higher level of debt utilization, which may have been driven by strategic decisions to fund growth initiatives or capital expenditures.
Overall, fluctuations in the financial leverage ratio of Topgolf Callaway Brands Corp indicate varying levels of debt dependence and financial risk management strategies employed by the company over the years. Investors and creditors should closely monitor these changes to assess the company's financial health and stability.
Peer comparison
Dec 31, 2023