SPX Corp (SPXC)
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 | 2,439,700 | 2,473,000 | 2,501,600 | 2,021,400 | 1,930,900 | 2,482,500 | 2,489,600 | 2,567,200 | 2,628,600 | 2,489,800 | 2,410,500 | 2,297,000 | 2,333,700 | 2,250,000 | 2,256,400 | 2,221,900 | 2,167,800 | 2,062,400 | 2,067,300 | 2,101,400 |
| Total stockholders’ equity | US$ in thousands | 1,194,600 | 1,146,900 | 1,172,600 | 1,126,100 | 1,079,200 | 1,079,700 | 1,088,600 | 1,115,800 | 1,102,900 | 1,070,800 | 739,500 | 671,700 | 640,100 | 583,100 | 552,100 | 515,100 | 511,500 | 461,300 | 436,700 | 415,300 |
| Financial leverage ratio | 2.04 | 2.16 | 2.13 | 1.80 | 1.79 | 2.30 | 2.29 | 2.30 | 2.38 | 2.33 | 3.26 | 3.42 | 3.65 | 3.86 | 4.09 | 4.31 | 4.24 | 4.47 | 4.73 | 5.06 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,439,700K ÷ $1,194,600K
= 2.04
The financial leverage ratio of SPX Corp has shown fluctuations over the past several quarters, indicating changes in the company's debt level relative to its equity. The ratio has ranged from 1.79 to 5.06 over the past five years.
From the data provided, we observe an increasing trend in the financial leverage ratio from 1.79 in Dec 2019 to 5.06 in Jun 2021. This indicates that the company relied more on debt financing during this period. Subsequently, there was a gradual decrease in the ratio to 2.04 by the end of Dec 2023, suggesting a potential deleveraging or a shift in the capital structure towards equity financing.
A high financial leverage ratio implies a higher proportion of debt in the company's capital structure, which can magnify returns on equity but also increase financial risk. On the other hand, a low ratio may indicate a conservative financial approach but could limit growth opportunities.
It is essential for investors and stakeholders to monitor changes in the financial leverage ratio over time to assess the company's financial health, risk profile, and ability to meet its debt obligations. Additionally, understanding the reasons behind fluctuations in the ratio can provide insights into management's strategic decisions regarding capital structure and financing choices.
Peer comparison
Dec 31, 2023