NXP Semiconductors NV (NXPI)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 24,385,000 | 23,669,000 | 23,196,000 | 23,320,000 | 24,353,000 | 23,996,000 | 23,795,000 | 23,732,000 | 23,236,000 | 22,940,000 | 22,539,000 | 21,321,000 | 20,864,000 | 20,010,000 | 20,622,000 | 19,392,000 | 19,847,000 | 21,122,000 | 21,057,000 | 19,511,000 |
| Total stockholders’ equity | US$ in thousands | 9,531,000 | 9,406,000 | 9,018,000 | 8,829,000 | 8,644,000 | 8,488,000 | 8,172,000 | 7,949,000 | 7,449,000 | 7,106,000 | 6,962,000 | 6,509,000 | 6,528,000 | 6,738,000 | 7,442,000 | 8,303,000 | 8,944,000 | 8,876,000 | 8,862,000 | 9,036,000 |
| Financial leverage ratio | 2.56 | 2.52 | 2.57 | 2.64 | 2.82 | 2.83 | 2.91 | 2.99 | 3.12 | 3.23 | 3.24 | 3.28 | 3.20 | 2.97 | 2.77 | 2.34 | 2.22 | 2.38 | 2.38 | 2.16 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $24,385,000K ÷ $9,531,000K
= 2.56
The financial leverage ratio of NXP Semiconductors NV has shown a generally increasing trend over the past few years, indicating a rise in the company's reliance on debt financing. Starting at 2.16 in March 2020, the ratio increased to 3.28 by March 2022, before experiencing a slight decline to 2.57 by June 2024. This suggests that the company's debt levels relative to its equity have been on the rise, peaking in the second quarter of 2022 and then gradually decreasing.
A financial leverage ratio above 1 indicates that the company is using more debt than equity in its capital structure. NXP Semiconductors NV's ratio consistently being above 2 since March 2020 implies a significant presence of debt in the company's capital mix. This can potentially lead to higher financial risk, as increased debt levels may result in higher interest expenses and debt obligations that need to be met, especially during challenging economic conditions.
It is crucial for investors and stakeholders to closely monitor NXP Semiconductors NV's financial leverage ratio over time to assess the company's ability to manage its debt effectively and sustain its growth while taking into consideration the associated risks of a highly leveraged capital structure.
Peer comparison
Dec 31, 2024