Artivion Inc (AORT)

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 789,101 803,144 789,539 784,007 792,397 774,787 777,861 757,073 762,798 742,731 764,864 781,856 793,052 818,654 810,497 794,832 789,404 782,200 693,254 621,033
Total stockholders’ equity US$ in thousands 276,200 304,739 295,056 294,985 281,780 271,975 282,508 279,917 284,329 255,108 281,509 297,492 300,728 311,541 301,835 297,331 328,713 325,766 296,556 276,609
Financial leverage ratio 2.86 2.64 2.68 2.66 2.81 2.85 2.75 2.70 2.68 2.91 2.72 2.63 2.64 2.63 2.69 2.67 2.40 2.40 2.34 2.25

December 31, 2024 calculation

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

The financial leverage ratio of Artivion Inc has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio started at 2.25 on March 31, 2020, and gradually increased to a peak of 2.91 on September 30, 2022. Subsequently, the ratio decreased and stabilized around 2.6 to 2.7 until December 31, 2024, where it recorded a value of 2.86.

The financial leverage ratio indicates the proportion of the company's debt to its equity, reflecting the level of financial risk and dependency on debt financing. A high financial leverage ratio suggests that the company relies more on debt to finance its operations, which can increase financial risk and reduce financial flexibility. Conversely, a low ratio indicates a more conservative capital structure.

Overall, Artivion Inc's financial leverage ratio trended upwards initially, indicating an increasing reliance on debt financing, but later stabilized and even decreased slightly towards the end of the period. It is important for the company to monitor and manage its financial leverage ratio to maintain a healthy balance between debt and equity and mitigate associated risks.