NewMarket Corporation (NEU)

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	3,129,540	3,166,280	3,150,070	3,157,500	2,308,870	2,290,400	2,366,140	2,350,770	2,406,820	2,336,840	2,330,670	2,281,550	2,558,440	2,437,220	2,478,710	2,399,390	1,933,880	1,880,120	1,799,140	1,933,680
Total stockholders’ equity	US$ in thousands	1,461,580	1,364,290	1,235,350	1,152,290	1,077,060	971,943	892,740	821,800	762,407	667,376	721,335	760,090	762,129	772,773	849,210	810,355	759,824	723,526	635,285	639,249
Financial leverage ratio		2.14	2.32	2.55	2.74	2.14	2.36	2.65	2.86	3.16	3.50	3.23	3.00	3.36	3.15	2.92	2.96	2.55	2.60	2.83	3.02

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 exhibited fluctuations over the period under consideration. It indicates the extent to which the company relies on debt to finance its operations and growth. A higher financial leverage ratio suggests a higher level of debt relative to equity in the company's capital structure.

From March 31, 2020, to December 31, 2024, the financial leverage ratio of NewMarket Corporation ranged from a low of 2.14 to a high of 3.50. The ratio experienced fluctuations throughout the period, with some quarters showing an increase in leverage while others showed a decrease.

The ratio reached its peak of 3.50 on September 30, 2022, indicating a higher reliance on debt to finance operations at that point in time. Conversely, the ratio decreased to its lowest point of 2.14 on both December 31, 2024, and December 31, 2023, reflecting a lower level of debt relative to equity in the company's capital structure during those periods.

Overall, the trend in NewMarket Corporation's financial leverage ratio shows some variability, with the company experiencing fluctuations in its debt levels relative to equity over the years. Investors and stakeholders may monitor this ratio to assess the company's financial risk and stability.