Simpson Manufacturing Company Inc (SSD)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,736,170 | 2,704,720 | 2,503,970 | 1,484,120 | 1,232,570 |
| Total stockholders’ equity | US$ in thousands | 1,805,350 | 1,679,750 | 1,413,380 | 1,184,000 | 980,943 |
| Financial leverage ratio | 1.52 | 1.61 | 1.77 | 1.25 | 1.26 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,736,170K ÷ $1,805,350K
= 1.52
The financial leverage ratio of Simpson Manufacturing Company Inc has shown some fluctuations over the years. It stood at 1.26 as of December 31, 2020, slightly decreased to 1.25 by December 31, 2021, then rose significantly to 1.77 by December 31, 2022. However, it decreased to 1.61 by December 31, 2023, and further decreased to 1.52 by December 31, 2024. These changes in the financial leverage ratio indicate variations in the company's mix of debt and equity financing. Overall, a higher financial leverage ratio suggests higher financial risk due to increased reliance on debt financing, while a lower ratio indicates a more conservative capital structure. It is essential for Simpson Manufacturing Company Inc to monitor and manage its financial leverage ratio to ensure optimal balance and stability in its capital structure.
Peer comparison
Dec 31, 2024