Masimo Corporation (MASI)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,041,500 | 3,210,600 | 1,887,000 | 1,712,550 | 1,396,130 |
| Total stockholders’ equity | US$ in thousands | 1,364,800 | 1,338,900 | 1,550,200 | 1,407,640 | 1,167,870 |
| Financial leverage ratio | 2.23 | 2.40 | 1.22 | 1.22 | 1.20 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,041,500K ÷ $1,364,800K
= 2.23
The financial leverage ratio of Masimo Corporation has shown a fluctuating trend over the past five years. In 2019, the ratio stood at 1.20, indicating a relatively modest level of financial leverage. Subsequently, there was a notable increase in 2020 to 1.22, which was maintained in 2021 as well. The ratio then spiked to 2.40 in 2022, signifying a significant rise in financial leverage, which could indicate increased reliance on debt to finance operations or investments. However, in 2023, the ratio decreased to 2.23 but still remained at a higher level compared to the previous years. This suggests that Masimo has gradually increased its leverage over the years, with fluctuations in the ratio reflecting changes in the company's capital structure and debt management strategies. It is important for stakeholders to closely monitor this trend to assess the company's risk exposure and financial health.
Peer comparison
Dec 31, 2023