Newell Brands Inc (NWL)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 11,004,000 | 12,163,000 | 13,262,000 | 14,179,000 | 14,700,000 |
| Total stockholders’ equity | US$ in thousands | 2,751,000 | 3,112,000 | 3,519,000 | 4,091,000 | 3,874,000 |
| Financial leverage ratio | 4.00 | 3.91 | 3.77 | 3.47 | 3.79 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $11,004,000K ÷ $2,751,000K
= 4.00
The financial leverage ratio of Newell Brands Inc has shown some variation over the past five years. As of December 31, 2020, the ratio stood at 3.79, indicating that the company relied on debt financing to a significant extent relative to its equity. By December 31, 2021, the ratio decreased to 3.47, suggesting a slight decrease in the proportion of debt used in the capital structure.
However, the ratio increased to 3.77 by December 31, 2022, signaling a slight uptick in leverage again. Further, as of December 31, 2023, the financial leverage ratio rose to 3.91, indicating that the company utilized more debt to fund its operations compared to the previous year.
By the end of December 31, 2024, the ratio had increased to 4.00, reflecting a continued trend of higher leverage. It is important to note that a higher financial leverage ratio may indicate higher financial risk for the company, as increased debt levels could potentially lead to financial distress if not managed prudently.
Peer comparison
Dec 31, 2024