Whirlpool Corporation (WHR)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 17,312,000 | 17,124,000 | 20,285,000 | 20,436,000 | 18,973,000 |
| Total stockholders’ equity | US$ in thousands | 2,362,000 | 2,336,000 | 4,846,000 | 3,885,000 | 3,195,000 |
| Financial leverage ratio | 7.33 | 7.33 | 4.19 | 5.26 | 5.94 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $17,312,000K ÷ $2,362,000K
= 7.33
The financial leverage ratio for Whirlpool Corp. has shown variability over the past five years. In 2021, the ratio was at its lowest point of 4.19, indicating a lower level of financial leverage and a higher proportion of equity in the company's capital structure. This suggests a more conservative approach to financing operations.
However, in 2020, the financial leverage ratio increased to 5.36 and further to 5.91 in 2019, signaling an increase in financial leverage and a higher reliance on debt to fund the company's operations and growth. This could potentially lead to higher financial risk due to increased debt obligations.
In 2023 and 2022, the financial leverage ratio remained constant at 7.33, indicating continued stability in the company's capital structure with a significant portion financed by debt. This level of financial leverage suggests that Whirlpool Corp. may be comfortable with its current debt levels and has found a balance between debt and equity financing.
Overall, the trend in the financial leverage ratio for Whirlpool Corp. reflects fluctuations in the company's capital structure over the past five years, highlighting the importance of monitoring leverage levels to ensure a healthy balance between debt and equity financing.
Peer comparison
Dec 31, 2023