Veralto Corporation (VLTO)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | ||
|---|---|---|---|---|
| Total assets | US$ in thousands | 6,406,000 | 6,263,000 | 5,903,000 |
| Total stockholders’ equity | US$ in thousands | 2,038,000 | 1,954,000 | 1,666,000 |
| Financial leverage ratio | 3.14 | 3.21 | 3.54 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,406,000K ÷ $2,038,000K
= 3.14
The financial leverage ratio of Veralto Corporation has shown a gradual decrease over the three periods provided, from 3.54 on June 30, 2024, down to 3.21 on September 30, 2024, and further declining to 3.14 on December 31, 2024. This decrease indicates that the company is becoming less reliant on debt financing to fund its operations and investments. A lower financial leverage ratio generally suggests a lower risk of financial distress due to a reduced level of debt relative to equity in the company's capital structure. Veralto Corporation's decreasing trend in the financial leverage ratio may signify improved financial stability and a more balanced approach to capital structure management.
Peer comparison
Dec 31, 2024