Visteon Corp (VC)
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 | 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 | 2,271,000 | 2,164,000 | 2,192,000 | 2,182,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 480,000 | 474,000 | 477,000 | 487,000 |
| Financial leverage ratio | 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 | 4.73 | 4.57 | 4.60 | 4.48 |
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 been fluctuating over the past eight quarters, ranging from as low as 2.63 to as high as 4.19. This ratio indicates the proportion of the company's total assets funded by debt compared to equity. A higher financial leverage ratio implies a higher level of debt financing relative to equity, which can increase financial risk.
Visteon Corp.'s financial leverage ratio has generally been on an increasing trend since Q4 2022, reaching its peak at 4.19 in Q3 2022 before slightly decreasing in the most recent quarter to 2.63. This suggests that the company may have been relying more heavily on debt to finance its operations and growth, potentially signaling increased financial risk.
It is important for stakeholders to closely monitor Visteon Corp.'s financial leverage ratio to assess its ability to meet debt obligations and manage financial leverage effectively. A high level of debt relative to equity may indicate a higher risk of financial distress, especially during economic downturns or periods of volatility in the company's industry.
Peer comparison
Dec 31, 2023