Bio-Rad Laboratories Inc (BIO)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 12,299,100 | 13,501,700 | 17,799,400 | 12,972,600 | 8,008,860 |
| Total stockholders’ equity | US$ in thousands | 8,741,130 | 9,615,250 | 13,685,200 | 9,889,690 | 5,756,840 |
| Financial leverage ratio | 1.41 | 1.40 | 1.30 | 1.31 | 1.39 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $12,299,100K ÷ $8,741,130K
= 1.41
The financial leverage ratio of Bio-Rad Laboratories Inc. has shown some fluctuation over the past five years. The ratio was 1.41 in 2023, slightly higher compared to 1.40 in 2022 and 1.39 in 2019. This suggests that the company has been utilizing more debt to finance its operations relative to its equity in 2023.
In 2021, the financial leverage ratio was at its lowest point of 1.30, indicating a lower level of financial risk compared to the other years. However, in 2020, the ratio increased slightly to 1.31, before rising again in 2023.
Overall, the increasing trend in the financial leverage ratio from 2021 to 2023 may indicate a shift towards more debt financing, which could potentially lead to increased financial risk for the company. It is important for Bio-Rad Laboratories Inc. to carefully manage its debt levels to ensure financial stability and avoid potential financial distress.
Peer comparison
Dec 31, 2023