Masimo Corporation (MASI)

Financial leverage ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total assets	US$ in thousands	2,625,700	3,041,500	3,210,600	1,887,000	1,712,550
Total stockholders’ equity	US$ in thousands	1,051,900	1,364,800	1,338,900	1,550,200	1,407,640
Financial leverage ratio		2.50	2.23	2.40	1.22	1.22

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,625,700K ÷ $1,051,900K
= 2.50

The financial leverage ratio of Masimo Corporation has shown a steady increase over the years. As of December 31, 2020 and 2021, the ratio was constant at 1.22. However, there was a significant jump in the ratio to 2.40 as of December 31, 2022, indicating a higher level of financial leverage. The ratio slightly decreased to 2.23 by December 31, 2023, but then increased again to 2.50 by December 31, 2024. This suggests that Masimo Corporation has been relying more on debt to finance its operations and capital investments in recent years, potentially increasing its financial risk but also leveraging opportunities for growth. Further analysis of the company's capital structure and debt management strategies would be necessary to fully assess the implications of this trend in the financial leverage ratio.