Resideo Technologies Inc (REZI)
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 | 6,645,000 | 6,459,000 | 6,536,000 | 6,399,000 | 6,387,000 | 6,262,000 | 6,316,000 | 6,245,000 | 5,853,000 | 5,834,000 | 5,712,000 | 5,576,000 | 5,610,000 | 5,269,000 | 5,166,000 | 5,287,000 | 5,128,000 | 5,133,000 | 5,160,000 | 5,144,000 |
| Total stockholders’ equity | US$ in thousands | 2,749,000 | 2,645,000 | 2,677,000 | 2,604,000 | 2,529,000 | 2,400,000 | 2,394,000 | 2,361,000 | 2,252,000 | 2,158,000 | 2,103,000 | 2,032,000 | 1,993,000 | 1,605,000 | 1,495,000 | 1,521,000 | 1,602,000 | 1,573,000 | 1,593,000 | 1,592,000 |
| Financial leverage ratio | 2.42 | 2.44 | 2.44 | 2.46 | 2.53 | 2.61 | 2.64 | 2.65 | 2.60 | 2.70 | 2.72 | 2.74 | 2.81 | 3.28 | 3.46 | 3.48 | 3.20 | 3.26 | 3.24 | 3.23 |
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 eight quarters, declining from 2.65 in Q1 of 2022 to 2.42 in Q4 of 2023. This indicates that the company's reliance on debt to finance its operations has been gradually reducing. A lower financial leverage ratio suggests that Resideo Technologies Inc is using less debt compared to its equity, which can be seen as a positive sign as it indicates decreased financial risk and potentially stronger financial stability. However, it is essential to continue monitoring this ratio to ensure that the company maintains a healthy balance between debt and equity in its capital structure.