SPX Corp (SPXC)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,439,700 | 1,930,900 | 2,628,600 | 2,333,700 | 2,167,800 |
| Total stockholders’ equity | US$ in thousands | 1,194,600 | 1,079,200 | 1,102,900 | 640,100 | 511,500 |
| Financial leverage ratio | 2.04 | 1.79 | 2.38 | 3.65 | 4.24 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,439,700K ÷ $1,194,600K
= 2.04
The financial leverage ratio for SPX Corp has fluctuated over the past five years, indicating changes in the company's debt levels relative to its equity. A higher financial leverage ratio suggests a greater reliance on debt financing, while a lower ratio indicates a higher proportion of equity funding.
In 2019, SPX Corp had a high financial leverage ratio of 4.24, indicating significant debt relative to equity. The ratio decreased in the following years, reaching 3.65 in 2020 and further declining to 2.38 in 2021. This reduction may suggest a strategic shift towards deleveraging or a decrease in debt financing.
However, the financial leverage ratio increased to 1.79 in 2022 and then rose to 2.04 in 2023. These increases could signal a reversal in the trend towards lower leverage and potentially indicate an increase in debt relative to equity.
Overall, fluctuations in SPX Corp's financial leverage ratio highlight changes in the company's capital structure and financing decisions over the years, impacting its financial risk and stability. Further analysis of the reasons behind these fluctuations is necessary to fully assess the company's leverage position and its implications for investors and stakeholders.
Peer comparison
Dec 31, 2023