Whirlpool Corporation (WHR)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 16,301,000 | 17,312,000 | 17,124,000 | 20,285,000 | 20,436,000 |
| Total stockholders’ equity | US$ in thousands | 2,683,000 | 2,362,000 | 2,336,000 | 4,846,000 | 3,885,000 |
| Financial leverage ratio | 6.08 | 7.33 | 7.33 | 4.19 | 5.26 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $16,301,000K ÷ $2,683,000K
= 6.08
The financial leverage ratio, a measure of a company's debt levels relative to its equity, for Whirlpool Corporation has fluctuated over the years. As of December 31, 2020, the ratio stood at 5.26, indicating that the company had 5.26 times more debt than equity.
By December 31, 2021, the ratio decreased to 4.19, implying a lower level of leverage compared to the previous year. However, in the subsequent year, by December 31, 2022, the ratio surged to 7.33, reflecting a significant increase in debt relative to equity.
This high leverage ratio was maintained through December 31, 2023, remaining at 7.33. Subsequently, by December 31, 2024, the ratio dropped to 6.08, showing a slight decrease in debt levels compared to the prior year.
The trend of the financial leverage ratio for Whirlpool Corporation suggests fluctuating debt levels over the years, with a notable peak in 2022 and minor adjustments in the subsequent years. High leverage ratios can indicate increased financial risk and potential challenges in meeting debt obligations, while lower ratios may suggest a more conservative financial structure.
Peer comparison
Dec 31, 2024