Vontier Corp (VNT)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 4,171,600 | 3,339,700 | 3,284,100 |
| Total stockholders’ equity | US$ in thousands | 890,400 | 759,500 | 696,500 | 636,300 | 576,500 | 497,300 | 499,300 | 548,200 | 569,900 | 470,600 | 345,500 | 264,300 |
| Financial leverage ratio | 4.82 | 5.56 | 6.04 | 6.72 | 7.53 | 8.57 | 8.45 | 7.84 | 7.63 | 8.86 | 9.67 | 12.43 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,294,000K ÷ $890,400K
= 4.82
The financial leverage ratio of Vontier Corporation has shown a decreasing trend over the past several quarters, from 8.57 in Q3 2022 to 4.82 in Q4 2023. This indicates that the company has been reducing its reliance on debt to finance its operations and investments, which is generally viewed positively by investors and creditors. A lower financial leverage ratio suggests a lower financial risk for the company, as it indicates a lower proportion of debt in its capital structure compared to equity.
Despite the general decreasing trend, there have been fluctuations in the ratio over the quarters, which could be due to various factors such as changes in the company's borrowing activities, profitability, or asset values. The most recent ratio of 4.82 in Q4 2023 indicates that Vontier Corporation had $4.82 of debt for every $1 of equity, which shows a moderate level of financial leverage.
Overall, the decreasing trend in the financial leverage ratio suggests that Vontier Corporation has been managing its debt levels effectively and improving its financial stability over the past quarters. However, it is important for the company to continue monitoring and optimizing its capital structure to ensure long-term sustainability and growth.
Peer comparison
Dec 31, 2023