Newell Brands Inc (NWL)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 12,163,000 | 13,262,000 | 14,269,000 | 14,700,000 | 15,642,000 |
| Total stockholders’ equity | US$ in thousands | 3,112,000 | 3,519,000 | 4,158,000 | 3,874,000 | 4,963,000 |
| Financial leverage ratio | 3.91 | 3.77 | 3.43 | 3.79 | 3.15 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $12,163,000K ÷ $3,112,000K
= 3.91
The financial leverage ratio of Newell Brands Inc has been fluctuating over the past five years. The ratio increased from 3.15 in 2019 to 3.79 in 2020, then decreased to 3.47 in 2021 before rising to 3.77 in 2022, and finally reaching 3.91 in 2023. This increase in the financial leverage ratio indicates that the company has been relying more on debt to finance its operations and investments compared to its equity over the years. It is important to closely monitor this ratio as higher leverage can lead to increased financial risk and potential difficulties in meeting debt obligations in the future.
Peer comparison
Dec 31, 2023