Lantheus Holdings Inc (LNTH)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	1,651,150	1,321,260	863,784	869,821	405,919
Total stockholders’ equity	US$ in thousands	815,892	447,147	464,439	514,205	114,601
Financial leverage ratio		2.02	2.95	1.86	1.69	3.54

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,651,150K ÷ $815,892K
= 2.02

The financial leverage ratio of Lantheus Holdings Inc has fluctuated over the past five years. In 2019, the ratio was the highest at 3.54, indicating a higher level of debt relative to equity in the company's capital structure. This high ratio suggests that the company had a significant reliance on debt financing.

Subsequently, there was a significant decrease in the financial leverage ratio in 2020 to 1.69, which signifies a lower proportion of debt compared to equity in the capital structure. This reduction may indicate a strategic shift towards reducing debt levels or increasing equity investments in the business.

In 2021, the financial leverage ratio increased to 1.86, indicating a slight uptick in the use of debt relative to equity. However, the ratio remained lower compared to the previous year, suggesting a continued focus on optimizing the capital structure.

In 2022, there was a notable increase in the financial leverage ratio to 2.95, indicating a higher proportion of debt in the capital structure compared to the previous year. This increase may imply a strategic decision to leverage more debt financing for growth or investment opportunities.

Finally, in 2023, the financial leverage ratio decreased to 2.02, showing a lower reliance on debt financing compared to the previous year. This reduction in the ratio may suggest a more conservative approach to capital structure management.

Overall, the fluctuation in Lantheus Holdings Inc's financial leverage ratio over the past five years indicates varying levels of debt and equity utilization in the company's capital structure, reflecting potential changes in financing strategies and risk management practices.