Simpson Manufacturing Company Inc (SSD)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,704,720 | 2,503,970 | 1,484,120 | 1,232,570 | 1,095,370 |
| Total stockholders’ equity | US$ in thousands | 1,679,750 | 1,413,380 | 1,184,000 | 980,943 | 891,957 |
| Financial leverage ratio | 1.61 | 1.77 | 1.25 | 1.26 | 1.23 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,704,720K ÷ $1,679,750K
= 1.61
Simpson Manufacturing Co., Inc.'s financial leverage ratio depicts the extent to which the company relies on debt financing in relation to its equity. The trend analysis over the past five years reveals fluctuations in the financial leverage ratio.
Looking at the data, it is observed that the financial leverage ratio was at its highest in 2022 at 1.77, suggesting that the company had a higher proportion of debt in its capital structure compared to equity. However, in the subsequent year, the ratio decreased to 1.61, indicating a reduction in the company's reliance on debt financing.
Comparing the financial leverage ratio of 2023 to that of 2019, we see a consistent upward trajectory. This upward trend suggests that Simpson Manufacturing Co., Inc. has been gradually increasing its dependence on debt over the years.
In contrast, when comparing 2021 to 2020, there was minimal change in the financial leverage ratio, indicating stability in the company's capital structure during those years.
Overall, the financial leverage ratio analysis highlights fluctuations in Simpson Manufacturing Co., Inc.'s debt usage and signals potential shifts in its long-term financial strategy. It is important for stakeholders to closely monitor these changes to understand the company's risk exposure and financial health.
Peer comparison
Dec 31, 2023