Callaway Golf Company (MODG)
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 | 7,636,100 | 9,158,100 | 9,100,400 | 9,092,000 | 9,120,600 | 8,982,000 | 8,964,400 | 8,941,400 | 8,590,400 | 8,221,700 | 8,156,200 | 8,079,400 | 7,747,800 | 7,397,380 | 7,271,830 | 7,108,560 | 1,980,600 | 1,966,310 | 1,859,660 | 2,135,080 |
| Total stockholders’ equity | US$ in thousands | 2,407,700 | 3,935,600 | 3,933,500 | 3,887,000 | 3,878,200 | 3,951,900 | 3,932,700 | 3,811,100 | 3,774,300 | 3,806,500 | 3,790,200 | 3,700,500 | 3,682,900 | 3,721,930 | 3,739,460 | 3,612,820 | 675,644 | 688,534 | 624,548 | 759,967 |
| Financial leverage ratio | 3.17 | 2.33 | 2.31 | 2.34 | 2.35 | 2.27 | 2.28 | 2.35 | 2.28 | 2.16 | 2.15 | 2.18 | 2.10 | 1.99 | 1.94 | 1.97 | 2.93 | 2.86 | 2.98 | 2.81 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,636,100K ÷ $2,407,700K
= 3.17
The financial leverage ratio of Callaway Golf Company has shown fluctuating trends over the period from March 31, 2020, to December 31, 2024. The ratio started at 2.81 on March 31, 2020, increased to a peak of 3.17 on December 31, 2024. Generally, a financial leverage ratio above 2 indicates that the company is using more debt in its capital structure relative to equity.
The ratio decreased after reaching its peak in 2024, with a decrease to 2.31 by June 30, 2024, before increasing slightly to 2.33 by September 30, 2024. This suggests fluctuations in the company's debt levels and/or equity levels over the period.
Overall, analyzing the financial leverage ratio can provide insight into how effectively Callaway Golf Company is using debt to finance its operations and whether it has the ability to meet its financial obligations. It is important for investors and stakeholders to closely monitor these ratios for any significant changes that may impact the company's financial health and risk profile.
Peer comparison
Dec 31, 2024