Whirlpool Corporation (WHR)
Financial leverage ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 18,973,000 | 18,406,000 | 19,855,000 | 19,686,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 3,195,000 | 3,028,000 | 2,749,000 | 2,802,000 |
| Financial leverage ratio | 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 | 5.94 | 6.08 | 7.22 | 7.03 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $17,312,000K ÷ $2,362,000K
= 7.33
The financial leverage ratio of Whirlpool Corp. shows fluctuations over the given quarters. The ratio has exhibited an increasing trend from Q2 2022 to Q3 2023, reaching a peak of 8.41 in Q2 2023 before slightly decreasing to 8.18 in Q3 and Q4 2023. These figures indicate that the company has been relying more on debt to finance its operations and investments, resulting in higher leverage levels. However, despite the recent uptick in leverage ratios, it is worth noting that the company had a significant spike in Q2 2022, where the ratio reached its highest point of 8.41 during the analyzed period. Additionally, comparing the current leverages to those of Q1 2022 reveals a substantial increase in leverage over the quarters. This trend suggests that Whirlpool Corp. has been taking on more debt relative to its equity, potentially increasing financial risk and affecting its overall financial stability. Investors and stakeholders should closely monitor these leverage levels to assess the company's ability to manage its debt obligations effectively.
Peer comparison
Dec 31, 2023