CONMED Corporation (CNMD)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,300,020 | 2,297,590 | 1,766,020 | 1,751,670 | 1,775,100 |
| Total stockholders’ equity | US$ in thousands | 834,222 | 745,545 | 785,435 | 709,038 | 710,467 |
| Financial leverage ratio | 2.76 | 3.08 | 2.25 | 2.47 | 2.50 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,300,020K ÷ $834,222K
= 2.76
The financial leverage ratio of Conmed Corp. has exhibited fluctuations over the past five years. The ratio was 2.50 in 2019, increased to 2.47 in 2020, further increased to 2.25 in 2021, then increased significantly to 3.08 in 2022, and finally decreased to 2.76 in 2023.
The trend indicates that Conmed Corp. has been altering its capital structure over the years, possibly by changing the proportion of debt and equity in its financing mix. A higher financial leverage ratio generally implies a higher level of financial risk due to increased reliance on debt to finance operations. Conversely, a lower ratio suggests a more conservative approach with a greater proportion of equity funding.
The significant increase in the ratio from 2021 to 2022 may indicate a shift towards more debt financing, which could potentially increase financial risk for the company. However, the subsequent decrease in the ratio in 2023 suggests a potential effort to reduce leverage and financial risk.
Overall, it is important for stakeholders to monitor Conmed Corp.'s financial leverage ratio closely to assess the company's capital structure and risk profile, as changes in leverage can impact the firm's ability to meet its financial obligations and affect its overall financial health.
Peer comparison
Dec 31, 2023