Innoviva Inc (INVA)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,243,510 | 1,231,500 | 926,395 | 999,570 | 724,826 |
| Total stockholders’ equity | US$ in thousands | 674,955 | 565,788 | 414,743 | 539,912 | 313,495 |
| Financial leverage ratio | 1.84 | 2.18 | 2.23 | 1.85 | 2.31 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,243,510K ÷ $674,955K
= 1.84
The financial leverage ratio of Innoviva Inc has shown some variability over the past five years. The ratio decreased from 2.31 in 2019 to 1.84 in 2023, indicating a reduction in financial leverage during this period. A high financial leverage ratio suggests that a company relies more on debt financing, which can amplify returns on equity but also increase financial risk. Conversely, a lower ratio indicates less reliance on debt for financing operations.
Innoviva Inc's financial leverage has fluctuated between 1.84 and 2.31 over the past five years, with the highest ratio observed in 2019. The downward trend from 2019 to 2023 may indicate a strategic shift towards reducing debt levels or optimizing the company's capital structure. It is important for investors and stakeholders to monitor changes in the financial leverage ratio as it can impact the company's ability to meet financial obligations and its overall financial health.
Peer comparison
Dec 31, 2023