Cytek Biosciences Inc (CTKB)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Total assets | US$ in thousands | 494,457 | 519,476 | 463,305 |
| Total stockholders’ equity | US$ in thousands | 393,064 | 425,546 | 405,385 |
| Financial leverage ratio | 1.26 | 1.22 | 1.14 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $494,457K ÷ $393,064K
= 1.26
The financial leverage ratio measures the extent to which a company relies on debt financing to support its operations and growth. A higher financial leverage ratio indicates a greater proportion of debt in the company's capital structure, which can magnify returns but also increase financial risk.
In the case of Cytek Biosciences Inc, the trend in the financial leverage ratio over the past three years shows a consistent increase from 2011 to 2013. The ratio has increased from 1.14 in 2011 to 1.26 in 2013, reflecting a higher level of debt usage relative to equity in the company's capital structure.
This increasing trend in the financial leverage ratio may suggest that Cytek Biosciences Inc has been gradually relying more on debt financing to support its operations, investments, or expansion activities. While this can potentially enhance returns for shareholders, it also exposes the company to greater financial risk, especially in times of economic downturn or rising interest rates.
It would be essential for investors and stakeholders to closely monitor Cytek Biosciences Inc's debt levels and overall financial health to ensure that the company can effectively manage its debt obligations and maintain sustainable growth in the long term.
Peer comparison
Dec 31, 2023