Simpson Manufacturing Company Inc (SSD)
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 | 2,704,720 | 2,815,490 | 2,719,350 | 2,555,630 | 2,503,970 | 2,504,260 | 2,485,470 | 2,280,350 | 1,484,120 | 1,422,070 | 1,373,970 | 1,294,730 | 1,232,570 | 1,277,860 | 1,284,500 | 1,198,250 | 1,095,370 | 1,086,310 | 1,069,920 | 1,030,350 |
| Total stockholders’ equity | US$ in thousands | 1,679,750 | 1,669,490 | 1,583,610 | 1,487,410 | 1,413,380 | 1,337,560 | 1,284,640 | 1,231,810 | 1,184,000 | 1,123,000 | 1,086,900 | 1,014,510 | 980,943 | 960,800 | 894,212 | 841,594 | 891,957 | 876,947 | 868,421 | 835,418 |
| Financial leverage ratio | 1.61 | 1.69 | 1.72 | 1.72 | 1.77 | 1.87 | 1.93 | 1.85 | 1.25 | 1.27 | 1.26 | 1.28 | 1.26 | 1.33 | 1.44 | 1.42 | 1.23 | 1.24 | 1.23 | 1.23 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,704,720K ÷ $1,679,750K
= 1.61
The financial leverage ratio of Simpson Manufacturing Co., Inc. has been showing a decreasing trend over the past several quarters, indicating that the company is relying less on debt to finance its operations. This suggests that the company may have been successful in reducing its debt levels or increasing its equity base.
The current financial leverage ratio of 1.61 in Q4 2023 is lower than the ratio in the previous quarters, which is a positive sign as it indicates a lower proportion of debt in the company's capital structure. However, it is worth noting that the ratio has fluctuated in the past, reaching a high of 1.93 in Q2 2022.
Overall, a decreasing trend in the financial leverage ratio can be viewed positively as it suggests improved financial stability and reduced financial risk for the company. Investors and creditors may view a lower financial leverage ratio positively as it indicates a stronger financial position and lower potential for default.
Peer comparison
Dec 31, 2023