Vishay Intertechnology Inc (VSH)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,239,920 | 3,865,650 | 3,543,260 | 3,154,470 | 3,120,780 |
| Total stockholders’ equity | US$ in thousands | 2,196,080 | 2,046,250 | 1,743,750 | 1,576,220 | 1,485,150 |
| Financial leverage ratio | 1.93 | 1.89 | 2.03 | 2.00 | 2.10 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,239,920K ÷ $2,196,080K
= 1.93
The financial leverage ratio of Vishay Intertechnology, Inc. has fluctuated over the past five years, ranging from 1.89 to 2.10. The ratio measures the extent to which the company relies on debt financing as opposed to equity. A higher financial leverage ratio indicates a greater reliance on debt to finance operations, while a lower ratio suggests a more conservative capital structure with a higher proportion of equity.
The company's financial leverage ratio peaked in 2019 at 2.10, indicating a higher level of debt relative to equity in that year. Subsequently, the ratio decreased in 2020 and 2021, suggesting a potential deleveraging or a shift towards a more balanced capital structure. However, in 2023, the ratio increased to 1.93, indicating a slight uptick in leverage compared to the previous year.
It is essential to consider the trend of the financial leverage ratio over time to assess the company's financial risk and stability. A consistent increase in the ratio may signal increasing financial risk due to higher debt levels, while a decreasing trend could indicate a more conservative approach to capital structure management. Additionally, comparing the company's ratio to industry benchmarks and peers can provide further insights into its financial health and leverage position.
Peer comparison
Dec 31, 2023