Williams Companies Inc (WMB)
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 | 54,532,000 | 53,837,000 | 52,409,000 | 52,747,000 | 52,627,000 | 50,788,000 | 49,025,000 | 48,936,000 | 48,433,000 | 48,672,000 | 47,555,000 | 46,049,000 | 47,612,000 | 45,985,000 | 45,507,000 | 45,262,000 | 44,165,000 | 44,320,000 | 45,343,000 | 44,629,000 |
| Total stockholders’ equity | US$ in thousands | 12,436,000 | 12,428,000 | 12,296,000 | 12,449,000 | 12,402,000 | 11,845,000 | 11,679,000 | 11,785,000 | 11,485,000 | 11,319,000 | 11,226,000 | 11,316,000 | 11,423,000 | 11,198,000 | 11,512,000 | 11,702,000 | 11,769,000 | 12,065,000 | 12,212,000 | 12,354,000 |
| Financial leverage ratio | 4.39 | 4.33 | 4.26 | 4.24 | 4.24 | 4.29 | 4.20 | 4.15 | 4.22 | 4.30 | 4.24 | 4.07 | 4.17 | 4.11 | 3.95 | 3.87 | 3.75 | 3.67 | 3.71 | 3.61 |
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 shown a generally increasing trend over the period from March 31, 2020, to December 31, 2024, indicating a growing level of financial leverage. The ratio increased from 3.61 as of March 31, 2020, to 4.39 as of December 31, 2024.
This upward trend suggests that the company has been relying more on debt to finance its operations and growth. A higher financial leverage ratio indicates that a larger portion of the company's assets is funded by debt rather than equity. While debt can be a cost-effective source of capital, it also introduces financial risk as the company must meet interest payments and debt obligations.
Williams Companies Inc should carefully monitor its financial leverage ratio to ensure it remains at a sustainable level and does not become overly burdensome. Managing leverage effectively is crucial to maintaining financial stability and the ability to capitalize on growth opportunities while also protecting against potential financial distress.
Peer comparison
Dec 31, 2024