Owens Corning Inc (OC)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 14,075,000 | 11,237,000 | 10,752,000 | 10,015,000 | 9,481,000 |
| Total stockholders’ equity | US$ in thousands | 5,077,000 | 5,166,000 | 4,575,000 | 4,296,000 | 3,901,000 |
| Financial leverage ratio | 2.77 | 2.18 | 2.35 | 2.33 | 2.43 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $14,075,000K ÷ $5,077,000K
= 2.77
Owens Corning Inc's financial leverage ratio has displayed fluctuations over the past five years. The ratio decreased from 2.43 as of December 31, 2020, to 2.33 as of December 31, 2021, showing improved leverage. However, in the following year, the ratio slightly increased to 2.35 by December 31, 2022. Subsequently, there was a notable decrease to 2.18 by December 31, 2023, indicating a lower reliance on debt compared to the company's equity. Nevertheless, by December 31, 2024, the financial leverage ratio spiked to 2.77, suggesting a higher level of financial risk due to increased debt usage. Overall, the trend in Owens Corning Inc's financial leverage ratio demonstrates varying degrees of leverage management throughout the years, warranting further analysis to understand the underlying factors influencing the company's financing decisions.