SPX Corp (SPXC)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,714,500 | 2,439,700 | 1,930,900 | 2,628,600 | 2,297,700 |
| Total stockholders’ equity | US$ in thousands | 1,384,400 | 1,194,600 | 1,079,200 | 1,102,900 | 629,200 |
| Financial leverage ratio | 1.96 | 2.04 | 1.79 | 2.38 | 3.65 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,714,500K ÷ $1,384,400K
= 1.96
The financial leverage ratio of SPX Corp has exhibited a decreasing trend over the past five years. As of December 31, 2020, the ratio stood at 3.65, indicating a higher level of financial leverage. However, by December 31, 2024, the ratio had decreased to 1.96. This decline suggests that the company has been reducing its reliance on debt financing in relation to its equity, which can be viewed positively as it indicates a potentially lower financial risk and a stronger equity base. Despite some fluctuations in the intervening years, the overall trajectory of the financial leverage ratio for SPX Corp has been downward, reflecting a strategic shift towards a more conservative capital structure. This trend may enhance the company's financial stability and flexibility in the long term.
Peer comparison
Dec 31, 2024