Edwards Lifesciences Corp (EW)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 9,363,200 | 8,292,500 | 8,502,600 | 7,237,100 | 6,488,100 |
| Total stockholders’ equity | US$ in thousands | 6,650,000 | 5,806,700 | 5,835,900 | 4,574,300 | 4,148,300 |
| Financial leverage ratio | 1.41 | 1.43 | 1.46 | 1.58 | 1.56 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,363,200K ÷ $6,650,000K
= 1.41
The financial leverage ratio of Edwards Lifesciences Corp has exhibited a declining trend over the past five years, indicating a decreasing reliance on debt to finance its operations. The ratio decreased from 1.56 in 2019 to 1.41 in 2023. This suggests that the company has been able to reduce its debt levels relative to its equity, which may lead to lower financial risk and improved financial stability. A lower financial leverage ratio generally indicates a stronger financial position and better ability to weather economic downturns or operational challenges. Edwards Lifesciences Corp's decreasing trend in financial leverage ratio reflects a more conservative capital structure and suggests prudent financial management.
Peer comparison
Dec 31, 2023