NXP Semiconductors NV (NXPI)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 24,385,000 | 24,353,000 | 23,236,000 | 20,864,000 | 19,847,000 |
| Total stockholders’ equity | US$ in thousands | 9,183,000 | 8,644,000 | 7,449,000 | 6,528,000 | 8,944,000 |
| Financial leverage ratio | 2.66 | 2.82 | 3.12 | 3.20 | 2.22 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $24,385,000K ÷ $9,183,000K
= 2.66
The financial leverage ratio of NXP Semiconductors NV has shown an increasing trend from 2.22 in December 2020 to 3.20 in December 2021, indicating a higher level of financial leverage and reliance on debt financing during this period. However, in the subsequent years, the ratio decreased to 3.12 in December 2022, 2.82 in December 2023, and further to 2.66 in December 2024.
The decreasing trend from 2021 onwards suggests a reduction in the company's reliance on debt to finance its operations, which could be viewed positively as it may lower the financial risks associated with high debt levels. It would be important to monitor this trend in the future to ensure that the company maintains a healthy balance between debt and equity in its capital structure.
Peer comparison
Dec 31, 2024