Waters Corporation (WAT)
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 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,553,800 | 4,511,620 | 4,449,050 | 4,508,960 | 4,626,850 | 4,497,180 | 4,548,200 | 3,306,820 | 3,281,450 | 3,070,050 | 3,040,570 | 3,041,270 | 3,094,930 | 3,115,920 | 3,103,650 | 3,211,560 | 2,839,920 | 2,679,290 | 2,648,300 | 2,666,520 |
| Total stockholders’ equity | US$ in thousands | 1,828,510 | 1,603,100 | 1,411,970 | 1,256,520 | 1,150,340 | 905,522 | 771,229 | 599,823 | 504,488 | 385,236 | 392,124 | 374,937 | 367,554 | 295,222 | 268,273 | 230,962 | 232,144 | -41,581 | -191,742 | -337,999 |
| Financial leverage ratio | 2.49 | 2.81 | 3.15 | 3.59 | 4.02 | 4.97 | 5.90 | 5.51 | 6.50 | 7.97 | 7.75 | 8.11 | 8.42 | 10.55 | 11.57 | 13.91 | 12.23 | — | — | — |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,553,800K ÷ $1,828,510K
= 2.49
The financial leverage ratio of Waters Corporation has shown a decreasing trend over the past few years, indicating a reduction in the company's reliance on debt to finance its operations. The ratio has decreased steadily from 12.23 as of December 31, 2020, to 2.49 as of December 31, 2024. This suggests that Waters Corporation has been effectively managing its debt levels and improving its financial structure.
A lower financial leverage ratio is generally viewed positively by investors and creditors as it signifies lower financial risk and potentially better financial health for the company. The decreasing trend in the ratio may indicate that Waters Corporation has been able to strengthen its balance sheet and reduce its debt burden over time.
It is important to note that while a lower financial leverage ratio is generally considered favorable, it is also crucial for a company to maintain an appropriate level of debt to support its growth and investment objectives. Waters Corporation's decreasing trend in the financial leverage ratio reflects a prudent approach to managing its capital structure.
Peer comparison
Dec 31, 2024