Cognex Corporation (CGNX)

Financial leverage ratio

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Total assets US$ in thousands 1,992,850 2,063,250 2,004,080 2,013,230 2,017,810 1,989,900 1,998,110 1,974,070 1,958,140 1,900,240 1,943,080 1,934,120 2,003,660 2,048,800 2,024,920 1,908,960 1,800,700 2,060,520 1,934,860 1,885,080
Total stockholders’ equity US$ in thousands 1,517,500 1,567,030 1,506,730 1,489,190 1,504,750 1,488,600 1,480,460 1,446,330 1,438,390 1,389,220 1,389,980 1,358,740 1,430,090 1,492,960 1,429,450 1,357,000 1,262,200 1,505,830 1,376,480 1,327,490
Financial leverage ratio 1.31 1.32 1.33 1.35 1.34 1.34 1.35 1.36 1.36 1.37 1.40 1.42 1.40 1.37 1.42 1.41 1.43 1.37 1.41 1.42

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,992,850K ÷ $1,517,500K
= 1.31

The financial leverage ratio of Cognex Corporation has shown a slightly decreasing trend over the past few years, starting at 1.42 in March 2020 and gradually decreasing to 1.31 by December 2024. This indicates that the company's reliance on debt to finance its operations has been reducing over time. A decreasing leverage ratio generally signals a lower level of financial risk for the company as it indicates a lesser proportion of debt in its capital structure compared to equity. Cognex Corporation's management of its financial leverage ratio suggests a prudent approach to managing its overall financial health and stability.