Hologic Inc (HOLX)
Financial leverage ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 8,469,500 | 9,139,300 | 9,337,900 | 9,448,700 | 9,290,300 | 9,071,200 | 9,357,400 | 9,514,500 | 9,285,100 | 8,919,900 | 8,590,600 | 8,044,000 | 7,550,700 | 7,195,800 | 6,803,100 | 6,821,800 | 6,311,900 | 6,442,100 | 6,522,400 | 6,525,300 |
| Total stockholders’ equity | US$ in thousands | 4,653,800 | 5,016,900 | 5,182,000 | 5,300,800 | 5,092,500 | 4,876,200 | 4,997,900 | 4,792,700 | 4,519,100 | 4,218,600 | 3,877,100 | 3,794,400 | 3,267,900 | 2,705,200 | 2,255,100 | 2,086,100 | 2,250,800 | 2,115,700 | 2,216,500 | 2,159,800 |
| Financial leverage ratio | 1.82 | 1.82 | 1.80 | 1.78 | 1.82 | 1.86 | 1.87 | 1.99 | 2.05 | 2.11 | 2.22 | 2.12 | 2.31 | 2.66 | 3.02 | 3.27 | 2.80 | 3.04 | 2.94 | 3.02 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $8,469,500K ÷ $4,653,800K
= 1.82
The financial leverage ratio of Hologic Inc has been fluctuating over the past five years, ranging from 1.78 to 3.27, with an average of approximately 2.31. The ratio indicates the company's reliance on debt financing to fund its operations and growth.
A higher financial leverage ratio suggests that the company is using more debt relative to its equity, which can amplify returns on equity when profitability is strong but also increases the risk of financial distress in times of economic downturns. Conversely, a lower ratio signifies a more conservative approach with less financial risk but potentially lower returns.
The increasing trend in the financial leverage ratio from 1.82 in December 2020 to 3.27 in March 2020 indicates that Hologic Inc has been taking on more debt relative to its equity over time. This could imply that the company's debt levels have been rising faster than its equity, potentially leading to higher interest expenses and financial risks.
Overall, investors and stakeholders should closely monitor Hologic Inc's financial leverage ratio to assess the company's capital structure and ability to meet its debt obligations while maximizing returns for shareholders.
Peer comparison
Dec 31, 2023