IPG Photonics Corporation (IPGP)

Financial leverage ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total assets US$ in thousands 2,289,260 2,698,900 2,743,280 3,170,540 2,935,700
Total stockholders’ equity US$ in thousands 2,024,470 2,415,380 2,385,360 2,746,580 2,592,820
Financial leverage ratio 1.13 1.12 1.15 1.15 1.13

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,289,260K ÷ $2,024,470K
= 1.13

The financial leverage ratio for IPG Photonics Corporation has shown a slight increase from 1.13 in December 2020 to 1.15 in December 2021 and maintained this level through December 2022. However, there was a slight decrease to 1.12 by December 2023 before returning to 1.13 by December 2024. Overall, the company's financial leverage ratio indicates a stable level of leverage over the analyzed period, suggesting that the company has a relatively conservative approach to debt financing compared to equity.