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.
Peer comparison
Dec 31, 2023