Mueller Water Products (MWA)
Financial leverage ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,635,900 | 1,505,000 | 1,498,100 | 1,518,000 | 1,395,000 |
| Total stockholders’ equity | US$ in thousands | 810,100 | 711,500 | 669,300 | 694,900 | 640,700 |
| Financial leverage ratio | 2.02 | 2.12 | 2.24 | 2.18 | 2.18 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,635,900K ÷ $810,100K
= 2.02
The financial leverage ratio of Mueller Water Products has demonstrated relatively modest fluctuations over the analyzed period from September 30, 2020, to September 30, 2024. Specifically, the ratio remained constant at 2.18 in both September 2020 and September 2021. Subsequently, there was a slight increase to 2.24 by September 30, 2022, indicating a marginal rise in the company's reliance on debt relative to equity during that period.
Following this peak, the ratio experienced a gradual decline, reaching 2.12 by September 30, 2023, suggesting a modest reduction in financial leverage. This downward trend continued into the next period, with the ratio decreasing further to 2.02 as of September 30, 2024, which reflects a deliberate or naturally occurring reduction in the company’s leverage position.
Overall, the trend indicates that Mueller Water Products has maintained a relatively stable leverage profile throughout this timeframe, with a slight overall decrease from its earlier levels. The data suggests a strategic move toward lowering financial leverage, possibly to mitigate risk or improve financial stability, although the changes are modest and within a narrow range.
Peer comparison
Sep 30, 2024