Edwards Lifesciences Corp (EW)

Financial leverage ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	9,363,200	9,370,800	9,004,000	8,651,200	8,292,500	8,638,200	8,425,100	8,419,900	8,502,600	8,160,300	7,662,100	7,213,700	7,237,100	6,800,800	6,424,100	6,076,100	6,488,100	5,966,300	5,573,500	5,469,300
Total stockholders’ equity	US$ in thousands	6,650,000	6,657,500	6,375,700	5,978,000	5,806,700	6,217,800	5,943,600	5,844,900	5,835,900	5,541,300	5,133,300	4,658,400	4,574,300	4,210,300	3,839,100	3,901,100	4,148,300	3,814,800	3,500,300	3,447,500
Financial leverage ratio		1.41	1.41	1.41	1.45	1.43	1.39	1.42	1.44	1.46	1.47	1.49	1.55	1.58	1.62	1.67	1.56	1.56	1.56	1.59	1.59

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 been relatively stable over the past eight quarters, ranging from 1.39 to 1.45. The ratio indicates that the company's capital structure is moderately leveraged, with more reliance on debt financing compared to equity. A financial leverage ratio above 1 suggests that the company has more debt than equity in its capital structure.

The consistency of the ratio around the range of 1.39 to 1.45 indicates that the company has been maintaining a consistent balance between debt and equity in its financing strategies. While a higher financial leverage ratio can amplify returns on equity in times of growth, it also increases financial risk, as higher debt levels result in higher interest expenses and potential solvency issues in times of financial distress.

Overall, the stability of Edwards Lifesciences Corp's financial leverage ratio suggests that the company has been managing its debt levels effectively and maintaining a balanced capital structure to support its operations and growth initiatives. Investors and stakeholders may monitor any significant deviations from this range to assess potential changes in the company's risk profile and financial health.