Sensata Technologies Holding NV (ST)

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	7,680,990	8,388,340	8,392,600	8,584,850	8,756,220	8,712,620	8,606,680	8,611,390	8,613,770	8,504,760	8,418,360	7,945,190	7,844,200	7,559,490	7,084,880	6,812,820	6,834,520	6,843,570	6,852,120	6,793,510
Total stockholders’ equity	US$ in thousands	2,996,280	3,225,180	3,209,770	3,193,490	3,110,810	3,069,320	3,023,580	3,072,320	3,094,730	3,009,620	2,913,450	2,790,640	2,705,490	2,574,640	2,493,400	2,537,800	2,573,760	2,602,890	2,617,060	2,564,370
Financial leverage ratio		2.56	2.60	2.61	2.69	2.81	2.84	2.85	2.80	2.78	2.83	2.89	2.85	2.90	2.94	2.84	2.68	2.66	2.63	2.62	2.65

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,680,990K ÷ $2,996,280K
= 2.56

The financial leverage ratio of Sensata Technologies Holding Plc has been relatively stable over the past eight quarters, ranging from 2.56 to 2.85. A financial leverage ratio of greater than 1 indicates that the company relies on debt to finance its operations and growth.

The trend in Sensata's financial leverage ratio shows a slight decrease from 2.81 in Q4 2022 to 2.56 in Q4 2023, suggesting a potential reduction in the company's reliance on debt financing during this period.

Overall, Sensata's financial leverage ratio indicates that the company has a moderate level of debt in its capital structure. It is important for investors and stakeholders to monitor this ratio over time to assess the company's ability to manage its debt levels effectively and maintain financial stability.