Innoviva Inc (INVA)

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	1,243,510	1,188,100	1,118,240	1,129,770	1,231,500	1,327,710	1,137,640	1,107,470	926,395	887,239	789,150	1,088,290	999,570	922,256	879,619	788,011	724,826	675,953	642,307	590,114
Total stockholders’ equity	US$ in thousands	674,955	627,493	555,087	561,493	565,788	641,368	388,337	386,642	414,743	402,811	329,780	634,461	539,912	485,556	456,907	379,543	313,495	267,055	226,683	188,245
Financial leverage ratio		1.84	1.89	2.01	2.01	2.18	2.07	2.93	2.86	2.23	2.20	2.39	1.72	1.85	1.90	1.93	2.08	2.31	2.53	2.83	3.13

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,243,510K ÷ $674,955K
= 1.84

Innoviva Inc's financial leverage ratio has displayed some fluctuations over the past eight quarters. The trend shows a decrease from Q4 2022 to Q2 2023, followed by a slight increase in Q3 2023, before stabilizing in Q4 2023. The financial leverage ratio indicates the level of debt the company is utilizing to finance its operations and investments.

A financial leverage ratio above 1 suggests that the company is employing more debt than equity in its capital structure. Innoviva Inc has consistently maintained ratios above 1 over the period, indicating a reliance on debt financing.

The downward trend seen from Q4 2022 to Q2 2023 could signal a reduction in debt levels relative to equity during this period. However, the subsequent increase in Q3 2023 suggests a reversal of this trend, which was then maintained in Q4 2023.

Overall, monitoring the financial leverage ratio is crucial for assessing the company's debt management and risk exposure. A high ratio could indicate a higher financial risk due to increased debt obligations and interest payments, while a low ratio may imply less reliance on debt financing but potentially slower growth due to less leverage. Investors and stakeholders would need to consider this trend along with other financial indicators to gauge Innoviva Inc's overall financial health and performance.