Woodward Inc (WWD)
Financial leverage ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,368,920 | 4,010,200 | 3,806,450 | 4,091,000 | 3,903,340 |
| Total stockholders’ equity | US$ in thousands | 2,176,420 | 2,070,990 | 1,901,120 | 2,214,780 | 1,992,680 |
| Financial leverage ratio | 2.01 | 1.94 | 2.00 | 1.85 | 1.96 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,368,920K ÷ $2,176,420K
= 2.01
The financial leverage ratio of Woodward Inc has shown a fluctuating trend over the past five years. The ratio increased from 1.85 in 2021 to 2.01 in 2024, indicating that the company's reliance on debt to finance its assets has slightly increased. However, it is important to note that the ratio was relatively stable between 1.94 and 2.00 in the intervening years.
A financial leverage ratio of 2.01 implies that Woodward Inc has $2.01 of debt for every $1 of equity. This suggests that the company is financing a significant portion of its operations through debt. A higher financial leverage ratio can amplify both returns and risks for shareholders, as it magnifies the impact of both positive and negative financial performance.
Overall, Woodward Inc's financial leverage ratio has been relatively stable over the past five years, with a slight increase in recent years. It would be important for investors and stakeholders to monitor this ratio closely to assess the company's capital structure and risk profile.