Somnigroup International Inc. (SGI)
Financial leverage ratio
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,568,000 | 4,578,000 | 4,585,800 | 4,553,900 | 4,546,100 | 4,570,800 | 4,537,100 | 4,359,800 | 4,351,700 | 4,404,400 | 4,321,900 | 4,323,400 | 4,467,300 | 3,277,600 | 3,542,100 | 3,308,600 | 3,455,400 | 3,201,900 | 3,306,200 | 3,061,800 |
| Total stockholders’ equity | US$ in thousands | 573,200 | 420,700 | 335,400 | 333,400 | 223,700 | 147,500 | 43,600 | -12,300 | -143,300 | -180,900 | -91,300 | 285,800 | 371,000 | 410,100 | 327,200 | 503,600 | 456,200 | 249,700 | 208,400 | 359,500 |
| Financial leverage ratio | 7.97 | 10.88 | 13.67 | 13.66 | 20.32 | 30.99 | 104.06 | — | — | — | — | 15.13 | 12.04 | 7.99 | 10.83 | 6.57 | 7.57 | 12.82 | 15.86 | 8.52 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,568,000K ÷ $573,200K
= 7.97
The financial leverage ratio of Somnigroup International Inc. has shown significant fluctuations over the analyzed periods. The ratio started at 8.52 on December 31, 2019, indicating moderate leverage. It then increased sharply to 15.86 by March 31, 2020, implying a substantial increase in financial leverage.
Subsequently, the ratio decreased to 6.57 by December 31, 2020, signaling a reduction in leverage. It then fluctuated over the following periods, reaching a peak of 104.06 on March 31, 2023, which is an unusually high value indicating excessive financial leverage and potential financial risk.
From that point on, the ratio gradually decreased over the subsequent periods, suggesting a reduction in financial leverage and potentially a measure to mitigate the risk of overleveraging. By September 30, 2024, the financial leverage ratio stood at 7.97, indicating a return to a more moderate level of leverage.
Overall, the pattern of Somnigroup International Inc.'s financial leverage ratio indicates a mix of high and low leverage periods, possibly reflecting changes in the capital structure and financial strategy of the company during the analyzed timeframe. It is important for the company to carefully manage its leverage to maintain a healthy balance between debt and equity financing and to avoid exposing itself to excessive financial risk.
Peer comparison
Sep 30, 2024