PHINIA Inc. (PHIN)
Financial leverage ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | ||
|---|---|---|---|---|
| Total assets | US$ in thousands | 4,041,000 | 4,191,000 | 3,869,000 |
| Total stockholders’ equity | US$ in thousands | 1,887,000 | 1,892,000 | 1,992,000 |
| Financial leverage ratio | 2.14 | 2.22 | 1.94 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,041,000K ÷ $1,887,000K
= 2.14
The financial leverage ratio of PHINIA Inc. has fluctuated over the past three quarters. As of December 31, 2023, the financial leverage ratio stood at 2.14. This indicates that for every dollar of equity in the company, there are $2.14 of debt. This level of financial leverage suggests that a significant portion of the company's assets are financed through debt rather than equity.
Comparing this to the financial leverage ratio of 2.22 as of September 30, 2023, shows a slight decrease in the ratio. This may suggest that the company has decreased its reliance on debt financing between these two quarters.
On the other hand, the financial leverage ratio was notably lower at 1.94 as of June 30, 2023. This decrease in the ratio indicates that the company had a higher proportion of equity funding relative to debt during that period.
Overall, the trend in PHINIA Inc.'s financial leverage ratio indicates some variability in the capital structure of the company over the past three quarters. It would be important to further investigate the reasons behind these fluctuations to determine the impact on the company's financial risk and stability.
Peer comparison
Dec 31, 2023