Visteon Corp (VC)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,862,000 | 2,893,000 | 2,731,000 | 2,739,000 | 2,727,000 | 2,357,000 | 2,321,000 | 2,405,000 | 2,450,000 | 2,326,000 | 2,146,000 | 2,243,000 | 2,234,000 | 2,060,000 | 2,122,000 | 2,171,000 | 2,271,000 | 2,164,000 | 2,320,000 | 2,488,000 |
| Total stockholders’ equity | US$ in thousands | 1,229,000 | 1,185,000 | 1,113,000 | 1,049,000 | 1,038,000 | 724,000 | 705,000 | 720,000 | 675,000 | 555,000 | 532,000 | 541,000 | 516,000 | 399,000 | 394,000 | 384,000 | 387,000 | 385,000 | 358,000 | 394,000 |
| Financial leverage ratio | 2.33 | 2.44 | 2.45 | 2.61 | 2.63 | 3.26 | 3.29 | 3.34 | 3.63 | 4.19 | 4.03 | 4.15 | 4.33 | 5.16 | 5.39 | 5.65 | 5.87 | 5.62 | 6.48 | 6.31 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,862,000K ÷ $1,229,000K
= 2.33
The financial leverage ratio of Visteon Corp has shown a decreasing trend over the period from March 31, 2020, to December 31, 2024. The ratio started at 6.31 on March 31, 2020, peaked at 6.48 on June 30, 2020, and then steadily declined.
As of December 31, 2024, the financial leverage ratio stands at 2.33, indicating a significant reduction in the company's reliance on debt to finance its operations and investments. A decreasing trend in the financial leverage ratio suggests that Visteon Corp has been effectively managing its debt levels and lowering financial risk over the years.
A lower financial leverage ratio typically implies a stronger financial position for a company, as it indicates a lower level of debt relative to equity. This can be seen as a positive sign for investors and creditors, as it may indicate improved financial stability and sustainability for Visteon Corp.
Peer comparison
Dec 31, 2024