PHINIA Inc. (PHIN)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | ||
|---|---|---|---|---|
| Total assets | US$ in thousands | 3,768,000 | 4,024,000 | 3,978,000 |
| Total stockholders’ equity | US$ in thousands | 1,574,000 | 1,704,000 | 1,850,000 |
| Financial leverage ratio | 2.39 | 2.36 | 2.15 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,768,000K ÷ $1,574,000K
= 2.39
The financial leverage ratio of PHINIA Inc. has shown a general increasing trend over the period from March 31, 2024, to December 31, 2024. The ratio increased from 2.15 as of March 31, 2024, to 2.36 as of September 30, 2024, and further to 2.39 as of December 31, 2024.
This indicates that the company is relying more on debt financing compared to equity financing. A higher financial leverage ratio suggests that a greater portion of the company's operations are funded through debt, which can increase financial risk.
It would be important for stakeholders to monitor this trend closely to ensure that the company can effectively manage its debt levels and associated risks. Further analysis of the company's debt structure, interest coverage, and overall financial health would provide a more comprehensive view of its leverage position.
Peer comparison
Dec 31, 2024