Stepan Company (SCL)
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 | 2,363,350 | 2,333,530 | 2,430,820 | 2,445,940 | 2,433,170 | 2,336,770 | 2,288,800 | 2,272,600 | 2,065,610 | 1,955,940 | 1,887,300 | 1,827,940 | 1,752,340 | 1,617,650 | 1,543,410 | 1,506,300 | 1,579,370 | 1,518,370 | 1,528,970 | 1,526,000 |
| Total stockholders’ equity | US$ in thousands | 1,216,490 | 1,202,770 | 1,215,100 | 1,189,910 | 1,166,060 | 1,130,240 | 1,125,710 | 1,116,740 | 1,074,190 | 1,057,300 | 1,048,800 | 1,002,280 | 986,693 | 938,193 | 897,429 | 866,778 | 891,783 | 854,209 | 857,658 | 831,447 |
| Financial leverage ratio | 1.94 | 1.94 | 2.00 | 2.06 | 2.09 | 2.07 | 2.03 | 2.04 | 1.92 | 1.85 | 1.80 | 1.82 | 1.78 | 1.72 | 1.72 | 1.74 | 1.77 | 1.78 | 1.78 | 1.84 |
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 relatively stable levels over the past eight quarters, ranging from 1.94 to 2.09. The ratio measures the extent to which the company relies on debt to finance its operations and investments, with higher ratios indicating higher debt levels relative to equity.
In the recent quarters, the financial leverage ratio ranged from 1.94 to 2.06, which suggests that Stepan Co. has maintained a moderate level of financial leverage. This indicates that the company's capital structure is composed of a mix of debt and equity, with a significant reliance on debt financing.
Overall, the trend in the financial leverage ratio over the past two years has shown fluctuations but has generally remained above 2, indicating a relatively higher proportion of debt in the company's capital structure. It is essential for investors and stakeholders to monitor this ratio to assess the company's risk exposure and financial stability.
Peer comparison
Dec 31, 2023