Krystal Biotech Inc (KRYS)

Financial leverage ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Total assets	US$ in thousands	853,296	818,355	790,350	684,026	531,847	558,450	576,379	601,324	616,874	626,295	451,095	443,556	443,018	310,844	311,451	318,145	205,131	209,023	214,232	205,156
Total stockholders’ equity	US$ in thousands	799,242	778,641	755,948	653,114	489,566	522,231	540,772	559,181	548,554	593,576	408,237	418,540	430,652	292,084	301,720	309,696	198,369	202,914	207,646	198,290
Financial leverage ratio		1.07	1.05	1.05	1.05	1.09	1.07	1.07	1.08	1.12	1.06	1.10	1.06	1.03	1.06	1.03	1.03	1.03	1.03	1.03	1.03

March 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $853,296K ÷ $799,242K
= 1.07

The financial leverage ratio of Krystal Biotech Inc has exhibited some fluctuations over the periods presented. The ratio ranged from 1.03 to 1.12 during the past 20 quarters, with an average around 1.06. This indicates that, on average, the company has maintained a fairly stable level of financial leverage, where a ratio of 1 suggests an equal proportion of debt and equity in the capital structure.

The fluctuations in the financial leverage ratio could be driven by changes in the company's capital structure, such as taking on additional debt or issuing more equity. A higher financial leverage ratio typically indicates higher financial risk, as it suggests the company is relying more on debt to finance its operations. Conversely, a lower ratio may indicate a more conservative approach to financial management.

It is important for investors and stakeholders to monitor the financial leverage ratio over time to assess the company's ability to meet its financial obligations and manage its debt levels effectively. Additionally, understanding the reasons behind any significant changes in the ratio can provide insights into the company's financial health and risk management strategies.