MSA Safety (MSA)

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	2,170,150	2,194,340	2,199,150	2,179,670	2,376,980	2,387,290	2,408,450	2,415,780	2,396,400	2,259,450	1,963,230	1,942,760	1,919,630	1,792,660	1,752,940	1,730,930	1,781,800	1,699,140	1,713,860	1,671,370
Total stockholders’ equity	US$ in thousands	966,802	868,726	831,131	769,746	923,741	842,415	838,070	860,907	834,388	824,177	840,419	814,676	839,201	772,465	741,510	712,596	725,800	702,067	685,054	657,361
Financial leverage ratio		2.24	2.53	2.65	2.83	2.57	2.83	2.87	2.81	2.87	2.74	2.34	2.38	2.29	2.32	2.36	2.43	2.45	2.42	2.50	2.54

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,170,150K ÷ $966,802K
= 2.24

The financial leverage ratio of MSA Safety Inc has fluctuated over the past eight quarters, ranging from a low of 2.24 in Q4 2023 to a high of 2.87 in Q2 2022. Generally, a financial leverage ratio above 2 indicates that the company relies more on debt to finance its operations than on equity.

The trend in MSA Safety Inc's financial leverage ratio shows a slight decrease from Q3 2022 to Q1 2023, but then an increase in the subsequent quarters up to Q4 2023. This indicates a potential increase in the company's debt relative to its equity over the most recent quarters.

It is important for stakeholders to monitor MSA Safety Inc's financial leverage ratio closely, as a high ratio may indicate increased financial risk and vulnerability to economic downturns or interest rate fluctuations. Additionally, a high financial leverage ratio could impact the company's credit rating and ability to secure favorable financing terms in the future.