Simpson Manufacturing Company Inc (SSD)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,736,170 | 2,897,460 | 2,773,360 | 2,721,950 | 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 |
| Total stockholders’ equity | US$ in thousands | 1,805,350 | 1,856,970 | 1,764,800 | 1,725,660 | 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 |
| Financial leverage ratio | 1.52 | 1.56 | 1.57 | 1.58 | 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 |
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 past few years. The ratio, which measures the company's use of debt relative to equity, was relatively stable around the range of 1.25 to 1.45 from March 2020 to June 2023.
In the period from March 2023 to December 2024, there was a noticeable increase in the financial leverage ratio, reaching a peak of 1.93 in June 2022 before declining slightly. This increase suggests that the company may have taken on more debt compared to its equity during this period.
It is important to note that while a higher financial leverage ratio can indicate increased financial risk due to higher debt levels, it can also potentially lead to higher returns for shareholders if the company effectively utilizes the borrowed funds to generate profits that exceed the cost of debt.
Overall, Simpson Manufacturing Company Inc's financial leverage ratio has shown some fluctuations but has generally been within a reasonable range, indicating a balanced mix of debt and equity in its capital structure. Monitoring this ratio over time can provide valuable insights into the company's financial health and risk profile.
Peer comparison
Dec 31, 2024