Stepan Company (SCL)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,304,650 | 2,363,350 | 2,433,170 | 2,065,610 | 1,752,340 |
| Total stockholders’ equity | US$ in thousands | 1,169,930 | 1,216,490 | 1,166,060 | 1,074,190 | 986,693 |
| Financial leverage ratio | 1.97 | 1.94 | 2.09 | 1.92 | 1.78 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,304,650K ÷ $1,169,930K
= 1.97
The financial leverage ratio of Stepan Company has shown an increasing trend from 1.78 in December 2020 to 1.97 in December 2024. This indicates that the company has been relying more on debt financing over the years to support its operations and growth. The peak ratio of 2.09 in December 2022 suggests a higher level of debt relative to equity during that period. However, the ratio decreased in December 2023 and remained stable in December 2024, indicating potential efforts to manage and reduce debt levels. It is important for stakeholders to closely monitor the company's financial leverage ratio to ensure sustainable capital structure and financial health.
Peer comparison
Dec 31, 2024