Fulgent Genetics Inc (FLGT)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,235,330 | 1,386,050 | 1,278,720 | 700,461 | 88,756 |
| Total stockholders’ equity | US$ in thousands | 1,136,100 | 1,266,680 | 1,158,750 | 569,387 | 82,777 |
| Financial leverage ratio | 1.09 | 1.09 | 1.10 | 1.23 | 1.07 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,235,330K ÷ $1,136,100K
= 1.09
The financial leverage ratio of Fulgent Genetics Inc has shown some fluctuations over the past five years. The ratio was relatively stable at around 1.09 to 1.10 from 2020 to 2022, indicating a consistent level of debt relative to equity during these years. However, there was a notable increase in the ratio to 1.23 in 2020, suggesting a higher level of financial leverage that year.
The leverage ratio then decreased to 1.07 in 2019, indicating a reduced reliance on debt financing compared to the previous year. Overall, the company's financial leverage ratio has displayed some variability, with a peak in 2020 and fluctuations in subsequent years.
It is important for investors and stakeholders to monitor changes in the financial leverage ratio, as high levels of leverage can indicate increased financial risk, while lower levels may signal a more conservative capital structure. It would be beneficial for Fulgent Genetics Inc to manage its leverage carefully to maintain a healthy balance between debt and equity financing.
Peer comparison
Dec 31, 2023