IDEXX Laboratories Inc (IDXX)

Financial leverage ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total assets	US$ in thousands	3,293,440	3,259,920	2,746,760	2,437,200	2,294,560
Total stockholders’ equity	US$ in thousands	1,595,310	1,484,530	608,737	689,992	632,088
Financial leverage ratio		2.06	2.20	4.51	3.53	3.63

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,293,440K ÷ $1,595,310K
= 2.06

The financial leverage ratio for IDEXX Laboratories Inc has shown fluctuations over the years, indicating changes in the company's capital structure and debt levels.

- As of December 31, 2020, the financial leverage ratio was 3.63, suggesting that the company had higher levels of debt relative to equity in its capital structure.
- By December 31, 2021, the ratio decreased slightly to 3.53, indicating a slight improvement in the balance between debt and equity.
- However, by December 31, 2022, the ratio spiked to 4.51, signaling a significant increase in financial leverage, possibly due to higher debt levels or a decrease in equity.
- The ratio then dropped notably to 2.20 by December 31, 2023, indicating a significant decrease in the company's financial leverage, which may suggest a decrease in debt or an increase in equity.
- Finally, as of December 31, 2024, the ratio further decreased to 2.06, continuing the trend of lower financial leverage, indicating a more conservative capital structure.

Overall, the fluctuation in IDEXX Laboratories Inc's financial leverage ratio reflects changes in the company's debt management and capital structure over the years, highlighting the importance of monitoring and managing financial leverage for long-term financial health.