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


See also:

Boston Scientific Corp Financial Leverage (Quarterly Data)