NXP Semiconductors NV (NXPI)
Financial leverage ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 20,016,000 | 21,254,000 | 21,530,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 9,441,000 | 9,390,000 | 10,505,000 |
| Financial leverage ratio | 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 | 2.12 | 2.26 | 2.05 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $24,353,000K ÷ $8,644,000K
= 2.82
The financial leverage ratio of NXP Semiconductors NV has shown a declining trend over the past eight quarters, indicating a reduction in the company's reliance on debt to finance its operations. The ratio decreased from 3.28 in Q1 2022 to 2.82 in Q4 2023.
A lower financial leverage ratio suggests that the company has a lower proportion of debt in its capital structure relative to equity. This can be seen as a positive indicator of financial health and stability, as it implies lower financial risk and greater ability to weather economic downturns.
The decreasing trend in the financial leverage ratio may indicate that NXP Semiconductors NV has been managing its debt levels effectively or has been able to generate sufficient internal cash flows to support its operations and investments without relying heavily on debt financing.
Overall, the declining financial leverage ratio of NXP Semiconductors NV suggests a strengthening balance sheet and a more sustainable capital structure, which may be viewed favorably by investors and creditors.
Peer comparison
Dec 31, 2023