Owens Corning Inc (OC)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 11,237,000 | 10,752,000 | 10,015,000 | 9,481,000 | 10,006,000 |
| Total stockholders’ equity | US$ in thousands | 5,166,000 | 4,575,000 | 4,296,000 | 3,901,000 | 4,631,000 |
| Financial leverage ratio | 2.18 | 2.35 | 2.33 | 2.43 | 2.16 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $11,237,000K ÷ $5,166,000K
= 2.18
The financial leverage ratio of Owens Corning has exhibited some fluctuation over the past five years. The ratio, which measures the firm's use of debt to finance its operations, was 2.18 in 2023, down from 2.35 in 2022 and 2.43 in 2020. This indicates a decreasing reliance on debt in the most recent year. However, the ratio was higher in 2021 at 2.33 and was also elevated in 2019 at 2.16.
Overall, Owens Corning has maintained a moderately high level of financial leverage over the period, suggesting that a substantial portion of its operations are funded by debt. It is important for investors and stakeholders to monitor the trend in the financial leverage ratio to assess the company's risk exposure and financial stability.