Halozyme Therapeutics Inc (HALO)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,733,270 | 1,841,510 | 1,104,430 | 579,924 | 565,874 |
| Total stockholders’ equity | US$ in thousands | 83,808 | 169,798 | 196,953 | 151,047 | 91,765 |
| Financial leverage ratio | 20.68 | 10.85 | 5.61 | 3.84 | 6.17 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,733,270K ÷ $83,808K
= 20.68
The financial leverage ratio of Halozyme Therapeutics Inc. has shown a general increasing trend over the past five years, indicating a higher level of financial leverage being employed by the company. The ratio has more than doubled from 2019 to 2023, reaching a value of 20.68. This suggests that the company is relying more heavily on debt to finance its operations and growth.
An increasing financial leverage ratio can indicate that the company is taking on more debt relative to its equity, which may increase the company's financial risk. On the positive side, higher leverage can also allow the company to benefit from the potential returns on investment that exceed the cost of borrowed funds.
It is essential for investors and stakeholders to closely monitor the trend in the financial leverage ratio, as a significant increase in leverage could raise concerns about the company's ability to meet its debt obligations in the long run. Additionally, a high financial leverage ratio may signal that the company is more susceptible to economic downturns or changes in interest rates.
Peer comparison
Dec 31, 2023