Exelixis Inc (EXEL)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	2,942,360	3,071,490	2,616,240	2,137,330	1,885,670
Total stockholders’ equity	US$ in thousands	2,263,910	2,488,430	2,210,620	1,879,110	1,685,970
Financial leverage ratio		1.30	1.23	1.18	1.14	1.12

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,942,360K ÷ $2,263,910K
= 1.30

The financial leverage ratio of Exelixis Inc has shown a consistent increase over the past five years, indicating a trend of higher leverage. As of December 31, 2023, the financial leverage ratio stood at 1.30, signifying that the company's level of debt relative to its equity has increased compared to the prior years. This suggests that Exelixis Inc has been relying more on debt financing to fund its operations and growth initiatives.

The upward trend in the financial leverage ratio could potentially increase the company's financial risk and vulnerability to economic downturns or adverse market conditions. While higher leverage can amplify returns in favorable circumstances, it also magnifies losses during periods of financial distress.

It is essential for Exelixis Inc to carefully manage its debt levels and ensure that it can cover its debt obligations comfortably, especially in uncertain economic environments. Monitoring the financial leverage ratio and maintaining a balance between debt and equity will be crucial for the company's long-term financial stability and sustainability.