Owens Corning Inc (OC)
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 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 11,237,000 | 11,069,000 | 11,001,000 | 10,840,000 | 10,752,000 | 10,721,000 | 10,543,000 | 10,316,000 | 10,015,000 | 9,981,000 | 9,977,000 | 9,560,000 | 9,481,000 | 9,398,000 | 9,370,000 | 9,151,000 | 10,006,000 | 9,955,000 | 10,183,000 | 10,265,000 |
| Total stockholders’ equity | US$ in thousands | 5,166,000 | 5,105,000 | 5,014,000 | 4,791,000 | 4,575,000 | 4,640,000 | 4,540,000 | 4,341,000 | 4,296,000 | 4,210,000 | 4,117,000 | 3,928,000 | 3,901,000 | 3,852,000 | 3,624,000 | 3,487,000 | 4,631,000 | 4,483,000 | 4,405,000 | 4,262,000 |
| Financial leverage ratio | 2.18 | 2.17 | 2.19 | 2.26 | 2.35 | 2.31 | 2.32 | 2.38 | 2.33 | 2.37 | 2.42 | 2.43 | 2.43 | 2.44 | 2.59 | 2.62 | 2.16 | 2.22 | 2.31 | 2.41 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $11,237,000K ÷ $5,166,000K
= 2.18
The financial leverage ratio for Owens Corning has shown some fluctuation over the past eight quarters. It decreased from 2.35 in Q4 2022 to 2.18 in Q4 2023, indicating a lower level of financial leverage. However, the ratio slightly increased in the following quarters before reaching 2.26 in Q1 2023. This was followed by a slight decrease to 2.19 in Q2 2023 and remained relatively stable in Q3 2023 at 2.17.
Overall, the company's financial leverage ratio has been hovering around the 2.2 range, suggesting that Owens Corning relies more on debt financing in its capital structure compared to equity. This level of financial leverage should be carefully monitored to ensure the company maintains a healthy balance between debt and equity to support its operations and growth initiatives.