IDEXX Laboratories Inc (IDXX)

Financial leverage ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Total assets	US$ in thousands	3,293,440	3,350,770	3,414,870	3,353,520	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
Total stockholders’ equity	US$ in thousands	1,595,310	1,618,050	1,580,250	1,568,910	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
Financial leverage ratio		2.06	2.07	2.16	2.14	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

December 31, 2024 calculation

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

IDEXX Laboratories Inc's financial leverage ratio has shown a declining trend over the analyzed period, indicating a decreasing reliance on debt financing to support its operations and investments. The ratio decreased from 17.52 as of March 31, 2020, to 2.06 as of December 31, 2024. This significant reduction in the financial leverage ratio suggests that the company has been effectively managing its debt levels and improving its financial stability over time. A lower financial leverage ratio generally indicates lower financial risk and increased solvency for the company, as it implies a lower proportion of debt in its capital structure relative to equity. IDEXX's decreasing financial leverage ratio could be a result of paying down debt, generating healthy cash flows, or prudent capital structure management decisions. Overall, a declining trend in the financial leverage ratio is a positive signal for investors and stakeholders, as it reflects improved financial health and risk management for the company.