Merit Medical Systems Inc (MMSI)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	2,325,240	1,663,970	1,648,290	1,664,400	1,757,320
Total stockholders’ equity	US$ in thousands	1,202,000	1,144,400	1,039,800	958,575	949,944
Financial leverage ratio		1.93	1.45	1.59	1.74	1.85

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,325,240K ÷ $1,202,000K
= 1.93

The financial leverage ratio of Merit Medical Systems, Inc. has fluctuated over the past five years, ranging from 1.45 to 1.93. A higher financial leverage ratio indicates that the company relies more on debt to finance its operations and growth, which can amplify returns but also increase financial risk.

The financial leverage ratio in 2023 increased significantly to 1.93 compared to the previous year, signaling a higher level of debt relative to equity. This could imply that the company has taken on more debt to fund its activities or expansion plans.

In 2022, the financial leverage ratio decreased to 1.45, indicating a lower proportion of debt in the company's capital structure compared to 2021. This could suggest a decrease in financial risk as the company has reduced its reliance on debt financing.

The financial leverage ratio in 2021 was 1.59, showing a moderate level of leverage, which may indicate a balanced mix of debt and equity in the company's capital structure.

In 2020, the financial leverage ratio was 1.74, slightly higher than in 2021, which suggests an increase in debt usage for financing purposes during that year.

In 2019, the financial leverage ratio was 1.85, indicating a relatively high level of debt compared to equity. This could suggest that the company was more leveraged back in 2019.

Overall, fluctuations in the financial leverage ratio of Merit Medical Systems, Inc. over the years reflect varying degrees of reliance on debt financing, which can impact the company's financial stability and risk profile. It is important for investors and stakeholders to monitor changes in the financial leverage ratio to assess the company's ability to meet its debt obligations and sustain its growth strategies.