NewMarket Corporation (NEU)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	2,308,870	2,406,820	2,558,440	1,933,880	1,885,130
Total stockholders’ equity	US$ in thousands	1,077,060	762,407	762,129	759,824	683,098
Financial leverage ratio		2.14	3.16	3.36	2.55	2.76

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,308,870K ÷ $1,077,060K
= 2.14

The financial leverage ratio of NewMarket Corp. has exhibited fluctuations over the past five years. In 2023, the ratio stood at 2.14, indicating that the company had $2.14 of debt for every $1 of equity. This represents a decrease from the previous year, where the ratio was higher at 3.16.

Comparing the data further back, the financial leverage ratio has shown variability with values of 3.36 in 2021, 2.55 in 2020, and 2.76 in 2019. A higher ratio suggests that the company is relying more on debt to finance its operations, whereas a lower ratio indicates a stronger equity position.

The decreasing trend in the financial leverage ratio from 2022 to 2023 may indicate that NewMarket Corp. is becoming less reliant on debt financing or has increased its equity base. It is important for stakeholders to monitor the company's financial leverage ratio over time to assess its risk level and financial stability.