Artivion Inc (AORT)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	792,397	762,798	793,052	789,404	605,654
Total stockholders’ equity	US$ in thousands	281,780	284,329	300,728	328,713	285,696
Financial leverage ratio		2.81	2.68	2.64	2.40	2.12

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $792,397K ÷ $281,780K
= 2.81

The financial leverage ratio of Artivion Inc has been increasing steadily over the past five years, indicating a rising level of financial leverage. This ratio measures the extent to which the company relies on debt financing to support its operations and growth.

The trend of increasing financial leverage could suggest that Artivion Inc has been taking on more debt relative to its equity over the years, which may expose the company to higher financial risk. A higher financial leverage ratio typically means the company has a greater proportion of debt in its capital structure, which can magnify both returns and losses.

While a higher financial leverage ratio can potentially amplify returns for shareholders during favorable economic conditions, it also increases the company's vulnerability to economic downturns or changes in interest rates. It is important for Artivion Inc to carefully manage its debt levels to ensure that it maintains a healthy balance between debt and equity in its capital structure to mitigate financial risks and maintain long-term financial stability.