IDEXX Laboratories Inc (IDXX)

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	3,259,920	3,086,400	2,870,810	2,808,400	2,746,760	2,640,070	2,607,180	2,592,690	2,437,200	2,385,740	2,412,150	2,327,380	2,294,560	2,047,410	1,960,710	1,886,240	1,832,480	1,751,480	1,724,240	1,680,970
Total stockholders’ equity	US$ in thousands	1,484,530	1,297,410	1,093,860	841,101	608,737	475,999	457,008	639,798	689,992	754,754	747,460	702,696	632,088	440,576	272,963	107,674	177,473	202,418	171,246	51,562
Financial leverage ratio		2.20	2.38	2.62	3.34	4.51	5.55	5.70	4.05	3.53	3.16	3.23	3.31	3.63	4.65	7.18	17.52	10.33	8.65	10.07	32.60

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,259,920K ÷ $1,484,530K
= 2.20

Idexx Laboratories, Inc.'s financial leverage ratio has shown fluctuations over the past eight quarters, ranging from 2.20 to 5.70. This ratio measures the extent to which the company utilizes debt to finance its operations and investments. A higher financial leverage ratio indicates a higher level of debt relative to equity, suggesting greater financial risk.

In Q1 2023, the financial leverage ratio was relatively high at 3.34, indicating a significant reliance on debt for financing. This was followed by a decreasing trend in Q2 and Q3 2023, with ratios of 2.62 and 2.38 respectively, suggesting a moderation in the use of debt.

The most notable decrease occurred in Q4 2023, with the financial leverage ratio dropping to 2.20. This could indicate a strategic shift towards reducing leverage and improving financial stability. Overall, the downward trend in the financial leverage ratio from Q1 2023 to Q4 2023 may imply a decreasing dependence on debt and potentially a stronger equity position within the company.