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