Hologic Inc (HOLX)
Financial leverage ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 9,139,300 | 9,071,200 | 8,919,900 | 7,195,800 | 6,442,100 |
| Total stockholders’ equity | US$ in thousands | 5,016,900 | 4,876,200 | 4,218,600 | 2,705,200 | 2,115,700 |
| Financial leverage ratio | 1.82 | 1.86 | 2.11 | 2.66 | 3.04 |
September 30, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,139,300K ÷ $5,016,900K
= 1.82
The financial leverage ratio for Hologic, Inc. has exhibited a declining trend over the past five years, decreasing from 3.04 in September 2019 to 1.82 in September 2023. This indicates a reduction in the company's reliance on debt financing to support its assets. A lower financial leverage ratio suggests a lower degree of financial risk and potential vulnerability to economic downturns. Hologic's decreasing leverage ratio may imply that the company has been able to decrease its debt levels relative to its equity, potentially improving its financial stability and flexibility. However, it's important to note that a declining leverage ratio could also signal a decrease in the company's capacity to generate higher returns on equity due to reduced leverage. Further analysis of the company's capital structure and overall financial performance would be necessary to fully assess the implications of this trend.
Peer comparison
Sep 30, 2023