Vontier Corp (VNT)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,310,500 | 4,307,100 | 4,235,900 | 4,305,800 | 4,294,000 | 4,221,900 | 4,205,600 | 4,278,500 | 4,343,300 | 4,263,700 | 4,219,200 | 4,300,100 | 4,349,800 |
| Total stockholders’ equity | US$ in thousands | 1,051,100 | 1,034,600 | 1,016,100 | 984,900 | 890,400 | 759,500 | 696,500 | 636,300 | 576,500 | 497,300 | 499,300 | 548,200 | 569,900 |
| Financial leverage ratio | 4.10 | 4.16 | 4.17 | 4.37 | 4.82 | 5.56 | 6.04 | 6.72 | 7.53 | 8.57 | 8.45 | 7.84 | 7.63 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,310,500K ÷ $1,051,100K
= 4.10
The financial leverage ratio of Vontier Corp has shown a decreasing trend over the past few years, indicating a reduction in the company's reliance on debt to finance its operations.
As of December 31, 2021, the financial leverage ratio was 7.63, which decreased to 4.10 by December 31, 2024. This significant decline suggests that the company has been effectively managing its debt levels relative to its equity.
The decreasing trend in the financial leverage ratio implies that Vontier Corp has been gradually deleveraging its balance sheet, potentially reducing financial risk and improving overall financial stability. Lower financial leverage ratios are generally viewed positively by investors and creditors as they indicate lower levels of debt relative to equity, which can enhance the company's financial flexibility and resilience to economic downturns.
Overall, the declining trend in Vontier Corp's financial leverage ratio indicates a positive trajectory in terms of the company's capital structure and financial health.
Peer comparison
Dec 31, 2024