ICU Medical Inc (ICUI)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	4,378,440	4,515,640	1,880,740	1,763,690	1,692,380
Total stockholders’ equity	US$ in thousands	2,123,410	2,089,930	1,616,030	1,502,260	1,377,240
Financial leverage ratio		2.06	2.16	1.16	1.17	1.23

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,378,440K ÷ $2,123,410K
= 2.06

The financial leverage ratio for ICU Medical, Inc. has shown some variability over the past five years. The ratio was 1.23 in 2019, slightly increased to 1.17 in 2020, then experienced a more significant increase to 1.16 in 2021. However, in the following years, the ratio increased substantially to 2.16 in 2022 and slightly decreased to 2.06 in 2023.

This pattern indicates that ICU Medical, Inc. has been using more debt to finance its operations and investments in recent years, leading to higher financial leverage ratios. A financial leverage ratio above 1 indicates that the company relies more on debt financing than equity financing. The sharp increase in the ratio from 2021 to 2022 raises concerns about the company's increasing financial risk and the potential impact on its financial stability and ability to meet its debt obligations.

It is advisable for investors and stakeholders to closely monitor ICU Medical, Inc.'s leverage ratio trends and assess the associated risks of high debt levels. Additionally, the company may need to reassess its capital structure and financial strategy to maintain a healthy balance between debt and equity financing.