Cognex Corporation (CGNX)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	2,017,810	1,958,140	2,003,660	1,800,700	1,885,940
Total stockholders’ equity	US$ in thousands	1,504,750	1,438,390	1,430,090	1,262,200	1,355,710
Financial leverage ratio		1.34	1.36	1.40	1.43	1.39

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,017,810K ÷ $1,504,750K
= 1.34

The financial leverage ratio of Cognex Corp. has shown a fluctuating trend over the past five years. The ratio decreased from 1.39 in 2019 to 1.36 in 2022, before increasing to 1.34 in 2023. This indicates that the company's reliance on debt to finance its operations has slightly decreased in recent years, but there has been a slight uptick in 2023.

A financial leverage ratio of 1.34 in 2023 suggests that Cognex Corp. has $1.34 in total assets for every dollar of equity. This indicates that the company is using a moderate level of debt to support its operations and investments. However, it is important to consider the industry standards and compare this ratio with its peers to gain a better understanding of Cognex Corp.'s leverage position.

Overall, while the slight decrease in the financial leverage ratio indicates a conservative approach to debt management, further examination is needed to assess the company's overall financial health and risk exposure.