Bruker Corporation (BRKR)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,249,900 | 3,611,800 | 3,650,000 | 3,049,000 | 2,771,500 |
| Total stockholders’ equity | US$ in thousands | 1,377,200 | 1,113,800 | 1,070,500 | 961,200 | 906,800 |
| Financial leverage ratio | 3.09 | 3.24 | 3.41 | 3.17 | 3.06 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,249,900K ÷ $1,377,200K
= 3.09
The financial leverage ratio of Bruker Corp has shown a fluctuating trend over the past five years. The ratio was highest in 2021 at 3.41, indicating that the company relied significantly on debt to finance its operations and investments during that year. However, in 2022 and 2023, the financial leverage ratio decreased to 3.24 and 3.09 respectively, suggesting a slight reduction in the proportion of debt in the company's capital structure.
Overall, Bruker Corp's financial leverage ratio has been above 3 in the last five years, indicating a higher level of debt relative to equity in the company's capital structure. Investors and creditors may view this as a higher financial risk due to increased leverage and potential interest rate risk. It is important for the company to closely monitor and manage its debt levels to ensure long-term financial sustainability and stability.
Peer comparison
Dec 31, 2023