Artivion Inc (AORT)

Financial leverage ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total assets US$ in thousands 789,101 792,397 762,798 793,052 789,404
Total stockholders’ equity US$ in thousands 276,200 281,780 284,329 300,728 328,713
Financial leverage ratio 2.86 2.81 2.68 2.64 2.40

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $789,101K ÷ $276,200K
= 2.86

Based on the provided data, the financial leverage ratio of Artivion Inc has been gradually increasing over the years. The ratio was 2.40 as of December 31, 2020, and has steadily risen to 2.86 by December 31, 2024. This upward trend indicates that Artivion has been relying more on debt financing compared to equity financing. A higher financial leverage ratio suggests that the company has a higher level of financial risk and may be more vulnerable to economic downturns or fluctuations in interest rates. It is essential for stakeholders to closely monitor this trend and assess the company's ability to manage its debt levels effectively.