Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Monster Beverage Corp., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
- Financial Leverage Ratio Trends
- The financial leverage ratio shows a relatively stable trend over the observed periods from March 2019 to March 2024. The ratio starts at 1.26 in the first quarter of 2019, indicating a moderate reliance on debt relative to equity. There is a slight declining pattern seen over the years, with minor fluctuations but a general movement towards a ratio around 1.18 to 1.20 in the most recent quarters.
- Notably, the ratio decreases from 1.26 in early 2019 to approximately 1.20 by the end of 2020, suggesting a reduction in financial leverage or increased equity relative to debt. This level is maintained fairly consistently through 2021 and 2022, reflecting steady capital structure management.
- From late 2022 into 2023 and early 2024, the ratio stabilizes around 1.18. This indicates a slight but consistent decline in leverage, possibly reflecting continued efforts to moderate debt levels or strengthen equity positions.
- Overall, the financial leverage ratio indicates a conservative financial approach with controlled leverage, maintaining balance between debt and equity over time.
Debt Ratios
Debt to Equity
Monster Beverage Corp., debt to equity calculation (quarterly data)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Total debt | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Stockholders’ equity | 8,577,789) | 8,228,744) | 7,873,149) | 7,841,464) | 7,395,360) | 7,025,041) | 6,815,760) | 6,809,178) | 6,866,672) | 6,566,951) | 6,244,997) | 5,905,498) | 5,459,437) | 5,160,860) | 4,629,321) | 4,221,540) | 3,870,946) | 4,171,281) | 4,107,978) | 4,057,586) | 3,698,820) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to equity1 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||||||||||
| Coca-Cola Co. | 1.61 | 1.62 | 1.53 | 1.60 | 1.68 | 1.62 | 1.74 | 1.82 | 1.68 | 1.86 | 1.88 | 1.89 | 2.21 | 2.22 | 2.84 | 2.99 | 2.78 | — | — | — | — | |||||||
| Mondelēz International Inc. | 0.67 | 0.69 | 0.70 | 0.74 | 0.79 | 0.85 | 0.81 | 0.70 | 0.70 | 0.69 | 0.72 | 0.69 | 0.72 | 0.73 | 0.75 | 0.76 | 0.77 | — | — | — | — | |||||||
| PepsiCo Inc. | 2.41 | 2.38 | 2.38 | 2.47 | 2.45 | 2.28 | 2.07 | 2.12 | 2.20 | 2.51 | 2.60 | 2.76 | 3.13 | 3.28 | 3.31 | 3.60 | 3.06 | — | — | — | — | |||||||
| Philip Morris International Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 0 ÷ 8,577,789 = 0.00
2 Click competitor name to see calculations.
The available financial data primarily covers the stockholders’ equity of the company over a series of quarterly periods from March 31, 2019, through March 31, 2024. There is no data provided for total debt or the debt to equity ratio for any of the periods, limiting the ability to analyze leverage or solvency metrics comprehensively.
- Stockholders’ Equity Trend
- Stockholders’ equity demonstrates a general upward trend throughout the observed timeframe. Beginning at approximately $3.70 billion at the end of Q1 2019, equity increases steadily with only minor fluctuations in certain quarters.
- Notably, equity rose to around $4.17 billion by the end of 2019 but experienced a slight dip in Q1 2020 to approximately $3.87 billion. This decline appears temporary, as equity rebounded sharply over the subsequent quarters, reaching about $5.16 billion by Q4 2020.
- From 2021 onward, equity continued its ascent with relatively consistent quarterly increases, moving from roughly $5.46 billion in Q1 2021 to $6.57 billion by the end of 2021.
- During 2022, equity showed minor volatility, including a slight decline in Q2 and Q3 before climbing again, ending the year at about $7.03 billion. This upward momentum extended into 2023 and early 2024, with equity reaching approximately $8.58 billion by Q1 2024.
- Overall, the stockholders’ equity more than doubled over this five-year period, indicating a robust increase in the company’s net asset base.
- Missing Data Impact
- The absence of data regarding total debt and the debt to equity ratio prevents analysis of the company's capital structure, financial risk, and balance sheet leverage. Without this information, it is not possible to assess changes in debt levels or how equity growth correlates with indebtedness.
- Summary
- The data indicates strong equity growth over the five-year span with generally smooth upward trends, interrupted only by minor and short-lived decreases. This likely reflects accumulation of retained earnings, capital issuances, or other equity-augmenting activities. However, the lack of corresponding debt information limits insights into the company’s overall financial leverage and risk profile.
Debt to Capital
Monster Beverage Corp., debt to capital calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Total debt | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Stockholders’ equity | 8,577,789) | 8,228,744) | 7,873,149) | 7,841,464) | 7,395,360) | 7,025,041) | 6,815,760) | 6,809,178) | 6,866,672) | 6,566,951) | 6,244,997) | 5,905,498) | 5,459,437) | 5,160,860) | 4,629,321) | 4,221,540) | 3,870,946) | 4,171,281) | 4,107,978) | 4,057,586) | 3,698,820) | |||||||
| Total capital | 8,577,789) | 8,228,744) | 7,873,149) | 7,841,464) | 7,395,360) | 7,025,041) | 6,815,760) | 6,809,178) | 6,866,672) | 6,566,951) | 6,244,997) | 5,905,498) | 5,459,437) | 5,160,860) | 4,629,321) | 4,221,540) | 3,870,946) | 4,171,281) | 4,107,978) | 4,057,586) | 3,698,820) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to capital1 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||||||||||
| Coca-Cola Co. | 0.62 | 0.62 | 0.60 | 0.62 | 0.63 | 0.62 | 0.63 | 0.65 | 0.63 | 0.65 | 0.65 | 0.65 | 0.69 | 0.69 | 0.74 | 0.75 | 0.74 | — | — | — | — | |||||||
| Mondelēz International Inc. | 0.40 | 0.41 | 0.41 | 0.43 | 0.44 | 0.46 | 0.45 | 0.41 | 0.41 | 0.41 | 0.42 | 0.41 | 0.42 | 0.42 | 0.43 | 0.43 | 0.44 | — | — | — | — | |||||||
| PepsiCo Inc. | 0.71 | 0.70 | 0.70 | 0.71 | 0.71 | 0.69 | 0.67 | 0.68 | 0.69 | 0.72 | 0.72 | 0.73 | 0.76 | 0.77 | 0.77 | 0.78 | 0.75 | — | — | — | — | |||||||
| Philip Morris International Inc. | 1.26 | 1.31 | 1.25 | 1.25 | 1.23 | 1.26 | 1.51 | 1.48 | 1.52 | 1.57 | 1.57 | 1.62 | 1.65 | 1.66 | 1.70 | 1.68 | 1.84 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= 0 ÷ 8,577,789 = 0.00
2 Click competitor name to see calculations.
The financial data reveals a consistent upward trend in total capital over the observed quarters from March 31, 2019, through March 31, 2024. Starting at approximately 3.7 billion US dollars, total capital shows steady growth each quarter, reaching about 8.6 billion US dollars by the end of the period. This represents more than doubling of total capital over five years, indicating ongoing expansion or accumulation of financial resources.
Despite the lack of explicit data on total debt and the debt-to-capital ratio, the steady increase in total capital itself suggests a positive capital base growth. Without corresponding debt figures, it is not possible to comment on leverage or capital structure changes definitively. However, the increasing total capital could reflect retained earnings growth, equity issuance, or accumulation of other financing sources.
Notable within the trend are occasional quarters where the growth in total capital is modest or stabilizes. For example, between March 31, 2022, and June 30, 2022, total capital decreases slightly from approximately 6.87 billion to 6.81 billion before resuming growth afterward. This temporary dip might warrant further investigation to understand underlying causes such as capital adjustments or market factors.
Overall, the data points to a robust growth trajectory in the company's financial capacity measured by total capital across the analyzed period, underscoring effective capital management or expansion activities.
Debt to Assets
Monster Beverage Corp., debt to assets calculation (quarterly data)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Total debt | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Total assets | 10,098,066) | 9,686,522) | 9,314,338) | 9,263,338) | 8,844,362) | 8,293,105) | 8,204,805) | 8,175,012) | 8,187,459) | 7,804,784) | 7,449,408) | 7,071,543) | 6,534,366) | 6,202,716) | 5,697,683) | 5,193,813) | 4,881,497) | 5,150,352) | 5,137,366) | 5,084,332) | 4,655,851) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to assets1 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||||||||||
| Coca-Cola Co. | 0.43 | 0.43 | 0.41 | 0.42 | 0.44 | 0.42 | 0.43 | 0.45 | 0.44 | 0.45 | 0.46 | 0.47 | 0.50 | 0.49 | 0.54 | 0.55 | 0.54 | — | — | — | — | |||||||
| Mondelēz International Inc. | 0.25 | 0.27 | 0.28 | 0.29 | 0.31 | 0.32 | 0.32 | 0.29 | 0.29 | 0.29 | 0.30 | 0.29 | 0.29 | 0.30 | 0.30 | 0.31 | 0.31 | — | — | — | — | |||||||
| PepsiCo Inc. | 0.46 | 0.44 | 0.45 | 0.45 | 0.45 | 0.42 | 0.42 | 0.42 | 0.43 | 0.44 | 0.44 | 0.46 | 0.48 | 0.48 | 0.48 | 0.50 | 0.48 | — | — | — | — | |||||||
| Philip Morris International Inc. | 0.77 | 0.73 | 0.76 | 0.77 | 0.76 | 0.70 | 0.67 | 0.68 | 0.70 | 0.67 | 0.70 | 0.72 | 0.74 | 0.70 | 0.75 | 0.76 | 0.76 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Debt to assets = Total debt ÷ Total assets
= 0 ÷ 10,098,066 = 0.00
2 Click competitor name to see calculations.
The total assets of the company have exhibited a consistent upward trend over the analyzed period beginning from March 31, 2019, through March 31, 2024. Starting at approximately 4.66 billion USD, the assets rose steadily each quarter, culminating at nearly 10.1 billion USD by the end of the observed timeframe. This represents more than a doubling of the asset base over five years, indicating significant growth in the company’s asset holdings.
No data on total debt or the debt to assets ratio is available for the periods under review. This lack of information limits the ability to assess leverage, financial risk, and the capital structure dynamics that would usually complement the asset growth analysis.
The asset growth appears stable without noticeable volatility or sudden declines, suggesting that the company may have pursued consistent investment and expansion strategies during this period. The sustained increase in total assets could be attributed to factors such as acquisitions, capital expenditures, increased working capital, or other investments driving the company’s expansion.
In summary, the primary observable financial pattern is a robust and continuous increase in total assets without corresponding debt information to evaluate leverage or financial risk. This emphasizes asset growth as a dominant feature of the company’s financial evolution over these five years.
Financial Leverage
Monster Beverage Corp., financial leverage calculation (quarterly data)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Total assets | 10,098,066) | 9,686,522) | 9,314,338) | 9,263,338) | 8,844,362) | 8,293,105) | 8,204,805) | 8,175,012) | 8,187,459) | 7,804,784) | 7,449,408) | 7,071,543) | 6,534,366) | 6,202,716) | 5,697,683) | 5,193,813) | 4,881,497) | 5,150,352) | 5,137,366) | 5,084,332) | 4,655,851) | |||||||
| Stockholders’ equity | 8,577,789) | 8,228,744) | 7,873,149) | 7,841,464) | 7,395,360) | 7,025,041) | 6,815,760) | 6,809,178) | 6,866,672) | 6,566,951) | 6,244,997) | 5,905,498) | 5,459,437) | 5,160,860) | 4,629,321) | 4,221,540) | 3,870,946) | 4,171,281) | 4,107,978) | 4,057,586) | 3,698,820) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Financial leverage1 | 1.18 | 1.18 | 1.18 | 1.18 | 1.20 | 1.18 | 1.20 | 1.20 | 1.19 | 1.19 | 1.19 | 1.20 | 1.20 | 1.20 | 1.23 | 1.23 | 1.26 | 1.23 | 1.25 | 1.25 | 1.26 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | ||||||||||||||||||||||||||||
| Coca-Cola Co. | 3.76 | 3.77 | 3.71 | 3.78 | 3.86 | 3.85 | 4.05 | 4.05 | 3.79 | 4.10 | 4.09 | 4.05 | 4.42 | 4.52 | 5.22 | 5.42 | 5.18 | — | — | — | — | |||||||
| Mondelēz International Inc. | 2.73 | 2.52 | 2.48 | 2.51 | 2.58 | 2.65 | 2.55 | 2.40 | 2.41 | 2.37 | 2.43 | 2.41 | 2.45 | 2.46 | 2.46 | 2.47 | 2.48 | — | — | — | — | |||||||
| PepsiCo Inc. | 5.25 | 5.43 | 5.31 | 5.42 | 5.46 | 5.38 | 4.98 | 5.02 | 5.11 | 5.76 | 5.88 | 6.04 | 6.54 | 6.91 | 6.83 | 7.17 | 6.32 | — | — | — | — | |||||||
| Philip Morris International Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 10,098,066 ÷ 8,577,789 = 1.18
2 Click competitor name to see calculations.
- Total Assets
- The total assets show an overall upward trend from March 2019 through March 2024. Initially, assets increased steadily from approximately $4.66 billion to around $5.15 billion by the end of 2019. A brief decline occurred in the first quarter of 2020, dropping to about $4.88 billion, likely due to external factors impacting the market. Subsequently, a strong recovery and growth phase took place, with total assets rising consistently each quarter, reaching roughly $10.1 billion by March 2024. This reflects more than a doubling in asset base over five years, indicating significant expansion and asset accumulation.
- Stockholders’ Equity
- Stockholders’ equity mirrors the upward trend observed in total assets but with some fluctuations. Starting at around $3.7 billion in March 2019, equity rose steadily to approximately $4.17 billion by December 2019. A decline occurred in the first quarter of 2020, consistent with the decrease in assets, falling to about $3.87 billion. From mid-2020 onward, equity increased progressively, reaching about $6.8 billion by the end of 2022. Despite a minor plateau in mid-2022, equity continued its growth trajectory, culminating near $8.58 billion in March 2024. This steady increase suggests consistent retained earnings and capital increase over the period.
- Financial Leverage
- The financial leverage ratio remained relatively stable throughout the period, fluctuating narrowly between 1.18 and 1.26. Early in the period, leverage was slightly higher (around 1.26 in March 2019 and March 2020) but gradually decreased and stabilized near 1.18 to 1.20 from late 2020 onwards. This suggests that the company maintained a conservative and stable capital structure, with equity consistently comprising a significant portion of the total financing, limiting reliance on debt despite the expanding asset base.
- Overall Insights
- The data indicates a company undergoing steady growth with significant asset accumulation and increasing equity over the five-year span. The brief declines in early 2020 correspond with a general market disruption period, yet recovery was swift and sustained. The stable financial leverage ratio demonstrates prudent financial management, ensuring that growth was supported primarily by equity rather than an increase in debt. This conservative capital approach likely contributes to financial stability while supporting expansion initiatives.