Stanley Black & Decker Inc (SWK)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 23,663,800 | 24,963,300 | 28,180,000 | 23,566,300 | 20,596,600 |
| Total stockholders’ equity | US$ in thousands | 9,056,100 | 9,712,100 | 11,590,500 | 11,059,600 | 9,136,300 |
| Financial leverage ratio | 2.61 | 2.57 | 2.43 | 2.13 | 2.25 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $23,663,800K ÷ $9,056,100K
= 2.61
The financial leverage ratio of Stanley Black & Decker Inc has been gradually increasing over the past five years, from 2.25 in 2019 to 2.61 in 2023. This indicates that the company is relying more on debt to finance its operations and investments. A higher financial leverage ratio suggests a higher level of financial risk, as the company may face challenges in meeting its debt obligations, especially in times of economic downturn or reduced cash flows. It is important for stakeholders to closely monitor the trend in the financial leverage ratio to assess the company's ability to manage its debt levels effectively.
Peer comparison
Dec 31, 2023