Stanley Black & Decker Inc (SWK)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 21,848,900 | 23,663,800 | 24,963,300 | 28,197,600 | 23,566,300 |
| Total stockholders’ equity | US$ in thousands | 8,719,900 | 9,056,100 | 9,712,100 | 11,590,500 | 11,059,600 |
| Financial leverage ratio | 2.51 | 2.61 | 2.57 | 2.43 | 2.13 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $21,848,900K ÷ $8,719,900K
= 2.51
The financial leverage ratio of Stanley Black & Decker Inc has shown a increasing trend over the period from December 31, 2020, to December 31, 2024. The ratio increased from 2.13 in 2020 to 2.51 in 2024. This indicates that the company is relying more on debt financing relative to equity to fund its operations and investments. A higher financial leverage ratio typically implies higher financial risk, as the company is more leveraged, which could potentially magnify both returns and losses for shareholders. It is important for investors and stakeholders to monitor this ratio closely to assess the company's risk profile and financial health.
Peer comparison
Dec 31, 2024