Boston Scientific Corp (BSX)
Financial leverage ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 35,136,000 | 34,043,000 | 33,601,000 | 32,892,000 | 32,469,000 | 31,947,000 | 32,189,000 | 32,337,000 | 32,229,000 | 31,877,000 | 31,168,000 | 30,900,000 | 30,777,000 | 30,845,000 | 30,823,000 | 30,113,000 | 30,565,000 | 26,756,000 | 24,309,000 | 23,802,000 |
| Total stockholders’ equity | US$ in thousands | 19,282,000 | 18,886,000 | 18,226,000 | 17,850,000 | 17,573,000 | 17,640,000 | 17,251,000 | 16,735,000 | 16,623,000 | 16,461,000 | 15,942,000 | 15,720,000 | 15,327,000 | 15,564,000 | 15,616,000 | 13,804,000 | 13,877,000 | 9,698,000 | 9,424,000 | 9,232,000 |
| Financial leverage ratio | 1.82 | 1.80 | 1.84 | 1.84 | 1.85 | 1.81 | 1.87 | 1.93 | 1.94 | 1.94 | 1.96 | 1.97 | 2.01 | 1.98 | 1.97 | 2.18 | 2.20 | 2.76 | 2.58 | 2.58 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $35,136,000K ÷ $19,282,000K
= 1.82
The financial leverage ratio of Boston Scientific Corp. has shown some fluctuations over the past eight quarters, ranging from a low of 1.80 in Q3 2023 to a high of 1.93 in Q1 2022. The ratio measures the company's level of debt relative to its equity, indicating the extent to which the company relies on borrowed funds to finance its operations.
The trend in the financial leverage ratio indicates that Boston Scientific Corp. has been moderately leveraged, with a ratio consistently above 1, implying a higher reliance on debt financing compared to equity. The slight fluctuations in the ratio suggest that the company has been actively managing its debt levels over the period.
A higher financial leverage ratio generally signifies higher financial risk, as increased debt levels can lead to higher interest expenses and potential financial distress in challenging economic conditions. On the other hand, debt can also enhance returns for equity holders when utilized effectively.
Overall, it would be advisable for investors and stakeholders to monitor Boston Scientific Corp.'s financial leverage ratio along with other financial metrics to assess the company's financial health and risk profile accurately.
Peer comparison
Dec 31, 2023