Astrana Health Inc (ASTH)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 933,361 | 966,213 | 852,363 | 817,486 | 728,713 |
| Total stockholders’ equity | US$ in thousands | 614,218 | 542,561 | 448,167 | 330,824 | 191,549 |
| Financial leverage ratio | 1.52 | 1.78 | 1.90 | 2.47 | 3.80 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $933,361K ÷ $614,218K
= 1.52
The financial leverage ratio of Astrana Health Inc has exhibited a decreasing trend over the past five years. From 3.80 in 2019, the ratio has steadily declined to 2.47 in 2020, further to 1.90 in 2021, and then to 1.78 in 2022. In 2023, the ratio stands at 1.52.
A decreasing financial leverage ratio indicates that the company is relying less on debt to finance its operations and investments, which can be seen as a positive sign of financial stability and reduced risk. Astrana Health Inc has been able to lower its financial leverage over the years, potentially indicating improved financial health and a better debt management strategy. The decreasing trend suggests that the company may be utilizing more equity financing or paying down its existing debt levels. This could lead to lower interest expenses and less financial risk for the company in the long run.