Enovis Corp (ENOV)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,718,780 | 4,509,330 | 4,273,250 | 8,515,340 | 7,351,550 |
| Total stockholders’ equity | US$ in thousands | 2,562,260 | 3,418,390 | 3,448,080 | 4,617,380 | 3,543,390 |
| Financial leverage ratio | 1.84 | 1.32 | 1.24 | 1.84 | 2.07 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,718,780K ÷ $2,562,260K
= 1.84
The financial leverage ratio of Enovis Corp has shown variations over the past five years. As of December 31, 2020, the financial leverage ratio was 2.07, indicating that the company had a higher level of financial leverage at that time. However, there was a decline in the ratio to 1.84 by December 31, 2021, suggesting a slight improvement in the company's leverage position.
Subsequently, there was a significant decrease in the financial leverage ratio to 1.24 by December 31, 2022, indicating a notable reduction in the company's reliance on debt to finance its operations. However, by the end of 2023, the ratio increased slightly to 1.32, showing a slight uptick in leverage compared to the previous year.
Finally, as of December 31, 2024, the financial leverage ratio reverted back to 1.84, the same level as in 2021. This suggests that Enovis Corp may have taken on more debt relative to its equity compared to the previous year.
Overall, the trend in the financial leverage ratio of Enovis Corp indicates some fluctuations in the company's leverage position over the five-year period, with varying levels of debt relative to equity. It is essential for the company to carefully manage its leverage to maintain a healthy balance between debt and equity financing and to ensure long-term financial stability.
Peer comparison
Dec 31, 2024