Resideo Technologies Inc (REZI)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,645,000 | 6,387,000 | 5,853,000 | 5,610,000 | 5,128,000 |
| Total stockholders’ equity | US$ in thousands | 2,749,000 | 2,529,000 | 2,252,000 | 1,993,000 | 1,602,000 |
| Financial leverage ratio | 2.42 | 2.53 | 2.60 | 2.81 | 3.20 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,645,000K ÷ $2,749,000K
= 2.42
The financial leverage ratio of Resideo Technologies Inc has shown a decreasing trend over the past five years, indicating a decline in the company's reliance on debt to finance its operations. The ratio decreased from 3.20 in 2019 to 2.42 in 2023. This decrease suggests that the company has been reducing its debt levels relative to its equity, which could lead to lower financial risk and improved financial stability. Overall, the decreasing trend in the financial leverage ratio reflects a positive shift towards a more conservative capital structure for Resideo Technologies Inc.