Whirlpool Corporation (WHR)
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 | 16,301,000 | 17,160,000 | 17,343,000 | 17,370,000 | 17,312,000 | 16,889,000 | 16,981,000 | 16,864,000 | 17,124,000 | 17,511,000 | 18,352,000 | 19,487,000 | 20,285,000 | 20,394,000 | 20,081,000 | 20,338,000 | 20,436,000 | 20,359,000 | 18,676,000 | 20,338,000 |
| Total stockholders’ equity | US$ in thousands | 2,683,000 | 3,042,000 | 3,097,000 | 2,354,000 | 2,362,000 | 2,064,000 | 2,018,000 | 2,061,000 | 2,336,000 | 4,178,000 | 4,036,000 | 4,575,000 | 4,846,000 | 4,964,000 | 4,951,000 | 4,222,000 | 3,885,000 | 3,371,000 | 3,018,000 | 3,060,000 |
| Financial leverage ratio | 6.08 | 5.64 | 5.60 | 7.38 | 7.33 | 8.18 | 8.41 | 8.18 | 7.33 | 4.19 | 4.55 | 4.26 | 4.19 | 4.11 | 4.06 | 4.82 | 5.26 | 6.04 | 6.19 | 6.65 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $16,301,000K ÷ $2,683,000K
= 6.08
Whirlpool Corporation's financial leverage ratio has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio started at 6.65 in March 2020, decreased to 4.06 in June 2021, and then gradually increased to 8.41 by June 2023. From June 2023 to December 2024, the ratio fluctuated within a range between 5.60 and 8.41.
A higher financial leverage ratio indicates that a company is using more debt to finance its operations, which can amplify returns on equity but also increases the financial risk. Conversely, a lower ratio reflects a lesser reliance on debt funding, potentially indicating a more conservative financial structure.
Whirlpool's ratio trend suggests some level of fluctuation in its capital structure during this period, which could be a result of changes in the company's borrowing and refinancing activities or shifts in its overall financial strategy. It would be important to further investigate the reasons behind these fluctuations to assess the implications for the company's financial health and risk profile.
Peer comparison
Dec 31, 2024