Enovis Corp (ENOV)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,509,330 | 4,273,250 | 8,515,910 | 7,351,550 | 7,386,830 |
| Total stockholders’ equity | US$ in thousands | 3,418,390 | 3,448,080 | 4,617,380 | 3,543,390 | 3,441,430 |
| Financial leverage ratio | 1.32 | 1.24 | 1.84 | 2.07 | 2.15 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,509,330K ÷ $3,418,390K
= 1.32
The financial leverage ratio of Enovis Corp has exhibited a declining trend over the past five years, decreasing from 2.15 in 2019 to 1.32 in 2023. This suggests that the company has been relying less on debt financing and more on equity financing to support its operations and growth. A lower financial leverage ratio indicates a lower level of financial risk, as the company has less debt that needs to be serviced and repaid. It also implies a stronger equity position within the company's capital structure, which can enhance its overall financial stability. However, it is important to note that a very low financial leverage ratio may also indicate underutilization of debt, potentially missing out on the tax advantages and leverage benefits associated with debt financing. Overall, the decreasing trend in Enovis Corp's financial leverage ratio indicates a shift towards a more conservative and balanced capital structure.
Peer comparison
Dec 31, 2023