Hims Hers Health Inc (HIMS)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 441,186 | 366,341 | 420,585 | 118,697 | 204,765 |
| Total stockholders’ equity | US$ in thousands | 344,029 | 311,741 | 334,619 | -146,874 | -139,793 |
| Financial leverage ratio | 1.28 | 1.18 | 1.26 | — | — |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $441,186K ÷ $344,029K
= 1.28
The financial leverage ratio of Hims Hers Health Inc has shown some fluctuations over the past few years. In 2023, the ratio stands at 1.28, indicating that the company has $1.28 in assets for every $1 in equity. This suggests that the company is relying more on debt to finance its operations compared to equity.
In 2022, the ratio decreased to 1.18, which may indicate a decrease in the company's reliance on debt financing. However, in 2021, the ratio increased to 1.26, suggesting a reversal in the trend towards higher leverage.
The absence of data for 2020 and 2019 limits our ability to analyze the historical trend of the financial leverage ratio over a longer period. It would be beneficial to monitor the ratio over time to assess the company's capital structure and debt management strategies.