Masimo Corporation (MASI)

Financial leverage ratio

		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	Mar 31, 2019
Total assets	US$ in thousands	3,041,500	2,995,900	3,011,200	3,115,500	3,210,600	3,056,400	2,961,100	1,908,800	1,887,000	1,766,780	1,681,690	1,597,810	1,712,550	1,713,140	1,635,630	1,474,540	1,396,130	1,314,210	1,229,850	1,179,380
Total stockholders’ equity	US$ in thousands	1,364,800	1,275,600	1,308,300	1,330,300	1,338,900	1,252,600	1,202,700	1,582,140	1,550,200	1,468,150	1,391,240	1,328,120	1,407,640	1,414,800	1,344,540	1,253,280	1,167,870	1,108,360	1,039,870	1,005,080
Financial leverage ratio		2.23	2.35	2.30	2.34	2.40	2.44	2.46	1.21	1.22	1.20	1.21	1.20	1.22	1.21	1.22	1.18	1.20	1.19	1.18	1.17

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,041,500K ÷ $1,364,800K
= 2.23

Over the past 20 quarters, Masimo Corporation's financial leverage ratio has exhibited some fluctuations, ranging from a low of 1.17 to a high of 2.46. The financial leverage ratio measures the extent to which a company is utilizing debt to finance its operations and assets. A higher financial leverage ratio indicates that a company is relying more on debt, which can magnify returns but also increase financial risk.

From the data provided, we can observe that Masimo Corporation had a significant increase in its financial leverage ratio from the first quarter of 2022 to the second quarter of 2022, where it reached its peak at 2.46. This sudden spike in the financial leverage ratio may signify that the company took on additional debt during that period to support its operations or expansion activities.

Subsequently, the financial leverage ratio gradually decreased but remained relatively high compared to previous years. This indicates that Masimo Corporation has maintained a considerable level of debt in its capital structure, possibly to fund growth opportunities or investments.

It is crucial for investors and stakeholders to closely monitor Masimo Corporation's financial leverage ratio trends to assess the company's risk profile and financial stability. High levels of debt can lead to increased interest payments, which may impact profitability and cash flow, especially during challenging economic conditions.