Williams Companies Inc (WMB)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 52,627,000 | 48,433,000 | 47,612,000 | 44,165,000 | 46,040,000 |
| Total stockholders’ equity | US$ in thousands | 12,402,000 | 11,485,000 | 11,423,000 | 11,769,000 | 13,363,000 |
| Financial leverage ratio | 4.24 | 4.22 | 4.17 | 3.75 | 3.45 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $52,627,000K ÷ $12,402,000K
= 4.24
The financial leverage ratio for Williams Cos Inc has been increasing steadily over the past five years, from 3.45 in 2019 to 4.24 in 2023. This indicates that the company is relying more on debt to finance its operations and investments compared to its equity. A higher financial leverage ratio suggests that the company has a higher level of financial risk due to its increased reliance on debt for funding. It is important for investors and stakeholders to closely monitor changes in the financial leverage ratio to assess the company's ability to meet its debt obligations and manage its financial risk effectively.
Peer comparison
Dec 31, 2023