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.