Enpro Industries (NPO)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,499,500 | 2,647,800 | 2,974,600 | 2,083,600 | 2,035,100 |
| Total stockholders’ equity | US$ in thousands | 1,409,700 | 1,395,100 | 1,270,300 | 1,081,400 | 896,600 |
| Financial leverage ratio | 1.77 | 1.90 | 2.34 | 1.93 | 2.27 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,499,500K ÷ $1,409,700K
= 1.77
The financial leverage ratio of Enpro Inc has fluctuated over the past five years. The ratio indicates the proportion of the company's total assets that are financed by debt compared to equity. A higher financial leverage ratio suggests a greater reliance on debt to fund operations and investments.
From 2019 to 2020, there was a decrease in the financial leverage ratio from 2.29 to 1.93, indicating a slight reduction in the firm's debt relative to equity. However, in 2021, there was a significant increase in the ratio to 2.34, suggesting a higher level of debt used to finance the company's assets.
In the following two years, the ratio displayed further fluctuations, decreasing to 1.90 in 2022 and then to 1.77 in 2023. These reductions indicate a trend towards lower debt utilization in funding the company's operations and investments.
Overall, Enpro Inc has shown varying levels of financial leverage over the years, with a general trend towards moderating its reliance on debt financing, as evidenced by the decreasing ratios in recent years.