Globus Medical (GMED)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,251,750 | 5,086,040 | 4,993,790 | 4,943,610 | 5,086,080 | 5,355,880 | 2,212,460 | 2,149,620 | 2,076,130 | 1,976,510 | 1,914,710 | 1,998,690 | 1,957,260 | 1,910,580 | 1,830,210 | 1,737,890 | 1,679,480 | 1,541,740 | 1,465,800 | 1,479,360 |
| Total stockholders’ equity | US$ in thousands | 4,177,330 | 4,069,400 | 3,976,360 | 3,922,360 | 3,997,960 | 4,187,280 | 1,985,060 | 1,914,820 | 1,846,370 | 1,764,110 | 1,699,090 | 1,785,370 | 1,741,390 | 1,718,270 | 1,639,270 | 1,562,990 | 1,506,300 | 1,417,200 | 1,336,920 | 1,363,370 |
| Financial leverage ratio | 1.26 | 1.25 | 1.26 | 1.26 | 1.27 | 1.28 | 1.11 | 1.12 | 1.12 | 1.12 | 1.13 | 1.12 | 1.12 | 1.11 | 1.12 | 1.11 | 1.11 | 1.09 | 1.10 | 1.09 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,251,750K ÷ $4,177,330K
= 1.26
The financial leverage ratio of Globus Medical has shown a gradual increase over the years, reflecting a slight upward trend in the company's leverage position. The ratio has consistently remained above 1, indicating that the company has more debt in its capital structure compared to equity.
From March 31, 2020, to December 31, 2024, the financial leverage ratio has varied between 1.09 and 1.28. However, the quarterly fluctuations are relatively minor, with only a marginal increase seen in recent quarters. The ratio peaked at 1.28 on September 30, 2023, before slightly decreasing in the following periods.
Overall, the financial leverage ratio suggests that Globus Medical has been relying more on debt financing to fund its operations and growth activities. Investors and stakeholders typically use this ratio to assess the company's risk level and its ability to meet financial obligations. It is important for the company to carefully manage its debt levels to maintain a healthy balance between debt and equity in its capital structure.
Peer comparison
Dec 31, 2024