IPG Photonics Corporation (IPGP)

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 2,289,260 2,355,130 2,495,430 2,598,440 2,698,900 2,672,860 2,696,420 2,671,160 2,743,280 2,962,520 3,048,770 3,098,470 3,170,540 3,143,910 3,086,510 2,982,950 2,935,700 2,794,930 2,758,740 2,680,130
Total stockholders’ equity US$ in thousands 2,024,470 2,114,610 2,253,370 2,340,720 2,415,380 2,383,950 2,398,550 2,338,520 2,385,360 2,580,510 2,639,220 2,707,250 2,746,580 2,739,350 2,704,920 2,639,500 2,592,820 2,470,210 2,436,350 2,355,070
Financial leverage ratio 1.13 1.11 1.11 1.11 1.12 1.12 1.12 1.14 1.15 1.15 1.16 1.14 1.15 1.15 1.14 1.13 1.13 1.13 1.13 1.14

December 31, 2024 calculation

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

The financial leverage ratio of IPG Photonics Corporation has been relatively stable over the past few years, ranging from 1.11 to 1.16. This ratio indicates that the company's debt levels have been relatively consistent compared to its equity levels. A financial leverage ratio of around 1 suggests that the company is utilizing a balanced mix of debt and equity to finance its operations and investments. However, an increase in the ratio over time, such as the uptick to 1.16 in June 30, 2022, may indicate a higher reliance on debt, which could potentially increase financial risk. It is important for stakeholders to monitor the trend of this ratio to assess the company's capital structure and risk profile.