Tootsie Roll Industries Inc (TR)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,084,390 | 1,018,780 | 1,018,620 | 984,558 | 977,864 |
| Total stockholders’ equity | US$ in thousands | 823,422 | 783,171 | 769,042 | 763,327 | 759,854 |
| Financial leverage ratio | 1.32 | 1.30 | 1.32 | 1.29 | 1.29 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,084,390K ÷ $823,422K
= 1.32
The financial leverage ratio of Tootsie Roll Industries, Inc. has shown slight fluctuations over the past five years. The ratio indicates the proportion of the company's debt to its equity, reflecting its level of financial leverage. In this case, the trend shows that the company has maintained a relatively stable level of financial leverage, ranging between 1.29 and 1.32.
A financial leverage ratio above 1 implies that the company relies more on debt financing than equity, indicating a higher level of financial risk. Tootsie Roll Industries' ratio fluctuating around 1.30 suggests a balanced mix of debt and equity in its capital structure.
It is important to note that the interpretation of the financial leverage ratio should be considered in conjunction with other financial ratios and qualitative factors to obtain a comprehensive understanding of the company's overall financial health and risk profile.
Peer comparison
Dec 31, 2023