Sensata Technologies Holding NV (ST)
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 | ||
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Total assets | US$ in thousands | 7,143,260 | 7,314,330 | 8,189,440 | 7,615,950 | 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 |
Total stockholders’ equity | US$ in thousands | 2,890,440 | 2,957,770 | 3,011,550 | 2,974,830 | 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 |
Financial leverage ratio | 2.47 | 2.47 | 2.72 | 2.56 | 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 |
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 been relatively stable over the past several quarters, ranging between 2.47 and 2.94. This ratio measures the company's level of debt relative to its equity, indicating the extent to which the company relies on debt financing.
A financial leverage ratio of 2.47 implies that for every dollar of equity, the company has $2.47 of debt. A higher leverage ratio suggests a higher level of financial risk due to increased reliance on debt to finance operations, while a lower ratio indicates a more conservative financial structure.
Sensata's financial leverage ratio trending downwards since the peak in September 2020, when it reached 2.94, may indicate a reduction in the proportion of debt in its capital structure. However, the ratio has remained relatively consistent and within a manageable range, indicating a balanced approach to financing operations.
Overall, a financial leverage ratio around 2.5 to 3 suggests a moderate level of financial leverage for Sensata Technologies Holding NV, which could be considered acceptable depending on the industry and the company's overall financial health.
Peer comparison
Dec 31, 2024