Tootsie Roll Industries Inc (TR)
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 | 1,084,390 | 1,065,910 | 1,033,990 | 1,019,610 | 1,018,780 | 1,026,360 | 1,001,110 | 1,012,850 | 1,018,620 | 1,015,440 | 994,958 | 978,991 | 984,558 | 982,035 | 974,501 | 955,927 | 977,864 | 982,092 | 948,524 | 940,504 |
| Total stockholders’ equity | US$ in thousands | 823,422 | 803,874 | 785,376 | 791,691 | 783,171 | 783,601 | 769,276 | 769,759 | 769,042 | 756,762 | 752,819 | 758,816 | 763,327 | 760,965 | 752,608 | 751,732 | 759,854 | 758,329 | 742,804 | 744,828 |
| Financial leverage ratio | 1.32 | 1.33 | 1.32 | 1.29 | 1.30 | 1.31 | 1.30 | 1.32 | 1.32 | 1.34 | 1.32 | 1.29 | 1.29 | 1.29 | 1.29 | 1.27 | 1.29 | 1.30 | 1.28 | 1.26 |
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 been relatively stable over the past eight quarters, ranging from 1.29 to 1.33. This ratio indicates that the company has, on average, maintained a level of financial leverage of approximately 1.31 over this period.
A financial leverage ratio of 1.31 suggests that the company is utilizing a moderate level of debt to finance its operations compared to its equity. This implies that Tootsie Roll Industries, Inc. relies more on equity financing rather than debt financing to support its assets.
It is important to note that while a moderate level of leverage can magnify returns, it also increases financial risk, particularly in times of economic downturns or rising interest rates. In assessing the company's financial health, investors and stakeholders should consider the stability and sustainability of Tootsie Roll Industries, Inc.'s financial leverage ratio in conjunction with other financial metrics and market conditions.
Peer comparison
Dec 31, 2023