Resideo Technologies Inc (REZI)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 8,199,000 | 6,645,000 | 6,387,000 | 5,853,000 | 5,610,000 |
| Total stockholders’ equity | US$ in thousands | 3,309,000 | 2,749,000 | 2,529,000 | 2,252,000 | 1,993,000 |
| Financial leverage ratio | 2.48 | 2.42 | 2.53 | 2.60 | 2.81 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $8,199,000K ÷ $3,309,000K
= 2.48
The financial leverage ratio of Resideo Technologies Inc has shown a declining trend over the past few years. As of December 31, 2020, the ratio was at 2.81, indicating that the company relied more on debt to finance its operations compared to equity. However, this ratio decreased to 2.60 by the end of 2021, and further decreased to 2.53 by the end of 2022, suggesting a slight reduction in the company's dependency on debt.
By December 31, 2023, the financial leverage ratio had decreased to 2.42, indicating a continued trend towards a lower reliance on debt. However, by the end of 2024, the ratio saw a slight increase to 2.48, although it remained lower than the levels seen in previous years.
Overall, the declining trend in the financial leverage ratio of Resideo Technologies Inc suggests that the company has been gradually reducing its debt levels relative to equity, which could indicate improved financial stability and reduced financial risk over the years.