Sensata Technologies Holding NV (ST)

Financial leverage ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total assets	US$ in thousands	7,143,260	7,680,990	8,756,220	8,613,770	7,844,200
Total stockholders’ equity	US$ in thousands	2,890,440	2,996,280	3,110,810	3,094,730	2,705,490
Financial leverage ratio		2.47	2.56	2.81	2.78	2.90

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,143,260K ÷ $2,890,440K
= 2.47

The financial leverage ratio of Sensata Technologies Holding NV has shown a decreasing trend from 2.90 in 2020 to 2.47 in 2024. This ratio indicates that the company is relying more on equity financing rather than debt to fund its operations and growth. A lower financial leverage ratio generally signifies lower financial risk and a greater capacity to meet its financial obligations. The decreasing trend may suggest that Sensata Technologies Holding NV is becoming more conservative in its capital structure over the years. However, it is important to closely monitor this ratio to ensure the company maintains an optimal balance between debt and equity to support its business objectives.