Stanley Black & Decker Inc (SWK)
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 | 23,663,800 | 24,097,100 | 24,933,200 | 25,071,700 | 24,963,300 | 25,523,900 | 29,361,400 | 29,358,700 | 28,180,000 | 24,326,600 | 23,962,900 | 23,876,000 | 23,566,300 | 23,040,900 | 22,984,400 | 22,905,000 | 20,596,600 | 21,322,500 | 21,523,600 | 21,460,300 |
| Total stockholders’ equity | US$ in thousands | 9,056,100 | 9,327,300 | 9,533,800 | 9,490,300 | 9,712,100 | 9,546,600 | 9,079,800 | 9,352,800 | 11,590,500 | 11,316,300 | 11,084,000 | 11,401,800 | 11,059,600 | 10,372,900 | 9,959,500 | 8,953,400 | 9,136,300 | 8,262,300 | 8,228,000 | 7,932,500 |
| Financial leverage ratio | 2.61 | 2.58 | 2.62 | 2.64 | 2.57 | 2.67 | 3.23 | 3.14 | 2.43 | 2.15 | 2.16 | 2.09 | 2.13 | 2.22 | 2.31 | 2.56 | 2.25 | 2.58 | 2.62 | 2.71 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $23,663,800K ÷ $9,056,100K
= 2.61
The financial leverage ratio measures the extent to which a company is using debt to finance its operations compared to its equity. A higher financial leverage ratio indicates a higher level of debt relative to equity.
Looking at the data provided for Stanley Black & Decker Inc, the financial leverage ratio has fluctuated over the past few quarters. From March 2019 to March 2020, the ratio ranged between 2.25 and 2.71, showing some variability in the company's debt-to-equity structure.
There was a significant spike in the financial leverage ratio in the second and third quarters of 2022, reaching 3.14 and 3.23 respectively. This suggests that the company had increased its reliance on debt to finance its operations during that period.
Subsequently, from the fourth quarter of 2022 to the third quarter of 2023, the financial leverage ratio decreased consistently, indicating a reduction in the company's debt relative to equity.
Overall, the trend in Stanley Black & Decker Inc's financial leverage ratio demonstrates some volatility in its capital structure, with periods of higher leverage followed by periods of deleveraging. It is important for investors and stakeholders to monitor these fluctuations to assess the company's risk profile and financial health.
Peer comparison
Dec 31, 2023