Williams Companies Inc (WMB)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 54,532,000 | 52,627,000 | 48,433,000 | 47,612,000 | 44,165,000 |
| Total stockholders’ equity | US$ in thousands | 12,436,000 | 12,402,000 | 11,485,000 | 11,423,000 | 11,769,000 |
| Financial leverage ratio | 4.39 | 4.24 | 4.22 | 4.17 | 3.75 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $54,532,000K ÷ $12,436,000K
= 4.39
The financial leverage ratio of Williams Companies Inc has been gradually increasing over the years, indicating a rising level of debt relative to its equity. The ratio was 3.75 as of December 31, 2020, but has increased to 4.17 as of December 31, 2021, and further to 4.22 as of December 31, 2022. This trend continued with ratios of 4.24 as of December 31, 2023, and 4.39 as of December 31, 2024. This suggests that the company has been relying more on debt financing compared to its equity as it progresses through the years, potentially increasing its financial risk and interest obligations. Further analysis of the company's debt structure and overall financial health would be advisable to fully assess the implications of this trend.
Peer comparison
Dec 31, 2024