Stepan Company (SCL)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,363,350 | 2,433,170 | 2,065,610 | 1,752,340 | 1,579,370 |
| Total stockholders’ equity | US$ in thousands | 1,216,490 | 1,166,060 | 1,074,190 | 986,693 | 891,783 |
| Financial leverage ratio | 1.94 | 2.09 | 1.92 | 1.78 | 1.77 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,363,350K ÷ $1,216,490K
= 1.94
The financial leverage ratio of Stepan Co. has shown some fluctuation over the past five years. In 2023, the ratio stood at 1.94, a decrease from the previous year but still higher than the ratios in 2021, 2020, and 2019. This suggests that the company's reliance on debt to finance its operations and growth has decreased slightly compared to the previous year. However, it is still higher than in 2021 and 2020, indicating a higher level of financial leverage in 2023.
Overall, the trend in the financial leverage ratio for Stepan Co. appears to have been relatively stable, with some variability from year to year. It is important for investors and stakeholders to monitor this ratio to assess the company's ability to meet its financial obligations and manage its debt levels effectively.
Peer comparison
Dec 31, 2023