GE HealthCare Technologies Inc. (GEHC)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | ||
|---|---|---|---|---|
| Total assets | US$ in thousands | 33,089,000 | 32,454,000 | 27,539,000 |
| Total stockholders’ equity | US$ in thousands | 8,446,000 | 7,133,000 | 9,357,000 |
| Financial leverage ratio | 3.92 | 4.55 | 2.94 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $33,089,000K ÷ $8,446,000K
= 3.92
The financial leverage ratio of GE HealthCare Technologies Inc. has shown fluctuations over the past three years. In December 31, 2022, the ratio was 2.94, indicating that the company had a moderate level of financial leverage with a higher proportion of debt in its capital structure. By December 31, 2023, the ratio increased significantly to 4.55, signaling a substantial rise in the company's financial leverage, potentially indicating a higher dependency on debt financing.
However, by December 31, 2024, the financial leverage ratio decreased to 3.92, although still higher than the initial level in 2022. This suggests that GE HealthCare Technologies Inc. made efforts to reduce its reliance on debt relative to its equity over the period but remains moderately leveraged.
Overall, the trend in the financial leverage ratio indicates that GE HealthCare Technologies Inc. has experienced changes in its capital structure and debt levels, which could impact its financial risk and cost of capital. Further analysis and comparison with industry benchmarks would provide additional insights into the company's leverage position.
Peer comparison
Dec 31, 2024