Boston Scientific Corp (BSX)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 39,395,000 | 35,136,000 | 32,470,000 | 32,230,000 | 30,778,000 |
| Total stockholders’ equity | US$ in thousands | 21,770,000 | 19,282,000 | 17,574,000 | 16,623,000 | 15,327,000 |
| Financial leverage ratio | 1.81 | 1.82 | 1.85 | 1.94 | 2.01 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $39,395,000K ÷ $21,770,000K
= 1.81
The financial leverage ratio for Boston Scientific Corp has been gradually decreasing over the past five years, from 2.01 in December 2020 to 1.81 in December 2024. This indicates that the company has been reducing its reliance on debt to finance its operations and investments. A decreasing financial leverage ratio is generally viewed positively by investors and creditors as it suggests a lower risk of financial distress and increased stability in the company's financial structure. The declining trend in the financial leverage ratio for Boston Scientific Corp may be a result of effective debt management strategies or improved profitability, which has allowed the company to rely less on debt financing. This trend reflects positively on the company's financial health and risk profile.
Peer comparison
Dec 31, 2024