Dynavax Technologies Corporation (DVAX)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 997,096 | 985,850 | 1,039,250 | 353,272 | 279,068 |
| Total stockholders’ equity | US$ in thousands | 622,072 | 581,013 | 222,374 | 58,693 | 8,290 |
| Financial leverage ratio | 1.60 | 1.70 | 4.67 | 6.02 | 33.66 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $997,096K ÷ $622,072K
= 1.60
The financial leverage ratio measures the extent to which a company relies on debt financing. A higher financial leverage ratio indicates a higher level of debt relative to equity, suggesting higher financial risk.
Dynavax Technologies Corp.'s financial leverage ratio has fluctuated over the past five years. In 2023, the ratio stood at 1.60, down from 1.70 in 2022. This indicates a slight decrease in reliance on debt financing compared to the previous year. However, the ratio remains higher than in 2021 and 2020 when it was 4.67 and 6.02, respectively.
The significant drop in the financial leverage ratio from 2020 to 2021 suggests a move towards a more balanced capital structure with a reduced reliance on debt. However, the ratio's substantial decrease in 2022 and subsequent minor decrease in 2023 signal continued efforts to manage debt levels.
Despite the recent improvements, Dynavax Technologies Corp. should continue monitoring its financial leverage ratio to ensure it maintains an optimal level of debt financing that aligns with its overall financial health and growth objectives.
Peer comparison
Dec 31, 2023