National Presto Industries Inc (NPK)

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 440,536 415,969 401,805 395,879 411,847 407,443 393,982 388,514 420,398 425,909 406,535 395,231 433,170 410,678 406,320 383,659 410,253 404,272 384,558 376,541
Total stockholders’ equity US$ in thousands 356,256 342,682 335,296 329,483 348,052 345,525 336,372 329,391 357,623 354,071 349,690 340,119 374,348 360,047 347,695 334,690 367,957 355,891 339,199 330,669
Financial leverage ratio 1.24 1.21 1.20 1.20 1.18 1.18 1.17 1.18 1.18 1.20 1.16 1.16 1.16 1.14 1.17 1.15 1.11 1.14 1.13 1.14

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $440,536K ÷ $356,256K
= 1.24

The financial leverage ratio of National Presto Industries Inc has shown a slight increase over the past quarters, reaching 1.24 as of December 31, 2023, indicating a higher level of leverage compared to previous periods. The ratio measures the company’s reliance on debt to finance its operations and investments.

The upward trend in the financial leverage ratio suggests that National Presto Industries may be taking on more debt relative to its equity, potentially increasing financial risk. A ratio above 1 indicates that the company has more debt than equity, signaling higher financial leverage and potentially greater volatility in earnings and cash flows.

It is important for investors and stakeholders to closely monitor changes in the financial leverage ratio, as excessive leverage can lead to financial instability, especially during economic downturns or adverse market conditions. Management should maintain a balance between debt and equity financing to ensure sustainable growth and financial health.


Peer comparison

Dec 31, 2023

Company name
Symbol
Financial leverage ratio
National Presto Industries Inc
NPK
1.24
Axon Enterprise Inc.
AXON
2.13
Sturm Ruger & Company Inc
RGR
1.20
Vista Outdoor Inc
VSTO
2.13