NewMarket Corporation (NEU)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,129,540 | 2,308,870 | 2,406,820 | 2,558,440 | 1,933,880 |
| Total stockholders’ equity | US$ in thousands | 1,461,580 | 1,077,060 | 762,407 | 762,129 | 759,824 |
| Financial leverage ratio | 2.14 | 2.14 | 3.16 | 3.36 | 2.55 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,129,540K ÷ $1,461,580K
= 2.14
The financial leverage ratio of NewMarket Corporation has shown fluctuations over the past five years. It was 2.55 as of December 31, 2020, indicating that the company had $2.55 of debt for every $1 of equity. Subsequently, the ratio increased to 3.36 by December 31, 2021, suggesting higher financial leverage. However, it decreased to 3.16 by December 31, 2022, before dropping significantly to 2.14 by December 31, 2023, and remaining stable at 2.14 by December 31, 2024.
The upward trend between 2020 and 2021 indicates that NewMarket Corporation was relying more on debt to finance its operations during that period. The subsequent decrease in 2022 followed by a stabilization in 2023 and 2024 suggests potential efforts to reduce debt levels and improve the balance between debt and equity.
Overall, while the ratio has fluctuated, the company seems to have managed its financial leverage effectively in recent years, with a more conservative approach evident in 2023 and 2024 compared to the peak in 2021.
Peer comparison
Dec 31, 2024