Visteon Corp (VC)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,727,000 | 2,450,000 | 2,234,000 | 2,271,000 | 2,271,000 |
| Total stockholders’ equity | US$ in thousands | 1,038,000 | 675,000 | 516,000 | 387,000 | 480,000 |
| Financial leverage ratio | 2.63 | 3.63 | 4.33 | 5.87 | 4.73 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,727,000K ÷ $1,038,000K
= 2.63
The financial leverage ratio of Visteon Corp. has fluctuated over the past five years. The ratio shows a decreasing trend from 2019 to 2023, indicating a reduced dependency on debt to finance the company's assets. However, it is important to note that the ratio still remains above 1, suggesting that the company relies on debt financing to some extent. The significant decrease in the financial leverage ratio from 5.87 in 2020 to 2.63 in 2023 may indicate a strategic shift towards a more conservative debt structure or improved financial stability. Overall, the trend in the financial leverage ratio highlights Visteon Corp.'s evolving capital structure and financial risk profile over the examined period.
Peer comparison
Dec 31, 2023