Gibraltar Industries Inc (ROCK)
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 | 1,256,450 | 1,288,050 | 1,238,580 | 1,208,490 | 1,210,610 | 1,326,260 | 1,295,410 | 1,242,340 | 1,214,900 | 1,232,220 | 1,186,130 | 1,155,190 | 1,212,490 | 1,101,850 | 1,035,500 | 984,522 | 984,450 | 984,818 | 906,858 | 866,258 |
| Total stockholders’ equity | US$ in thousands | 914,998 | 889,849 | 850,310 | 835,387 | 822,099 | 843,491 | 817,278 | 838,402 | 825,258 | 814,684 | 787,608 | 758,408 | 743,805 | 746,075 | 709,764 | 677,357 | 673,964 | 657,213 | 629,547 | 605,833 |
| Financial leverage ratio | 1.37 | 1.45 | 1.46 | 1.45 | 1.47 | 1.57 | 1.59 | 1.48 | 1.47 | 1.51 | 1.51 | 1.52 | 1.63 | 1.48 | 1.46 | 1.45 | 1.46 | 1.50 | 1.44 | 1.43 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,256,450K ÷ $914,998K
= 1.37
Over the past eight quarters, Gibraltar Industries Inc.'s financial leverage ratio has shown some fluctuation but has generally remained within a narrow range. The ratio has ranged from a low of 1.37 in Q4 2023 to a high of 1.59 in Q2 2022.
A financial leverage ratio above 1 indicates that the company relies more on debt to finance its operations than on equity. A decreasing trend in the ratio over time could indicate a move towards a more equity-based financing structure, which may reduce financial risk but also limit potential returns for shareholders. Conversely, an increasing trend in the ratio could indicate a higher level of financial risk due to increased debt levels.
It would be important for stakeholders and investors to closely monitor Gibraltar Industries Inc.'s financial leverage ratio to understand the company's capital structure and its implications for financial stability and growth potential.
Peer comparison
Dec 31, 2023