Merit Medical Systems Inc (MMSI)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,418,600 | 2,325,240 | 1,663,970 | 1,648,290 | 1,664,400 |
| Total stockholders’ equity | US$ in thousands | 1,379,360 | 1,202,000 | 1,144,400 | 1,039,800 | 958,575 |
| Financial leverage ratio | 1.75 | 1.93 | 1.45 | 1.59 | 1.74 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,418,600K ÷ $1,379,360K
= 1.75
The financial leverage ratio of Merit Medical Systems Inc has demonstrated fluctuations over the years, declining from 1.74 in 2020 to 1.59 in 2021, and further to 1.45 in 2022. This downward trend indicates a reduction in the company's reliance on debt to finance its operations, which can be viewed positively as it may reduce financial risk and increase financial stability. However, the ratio increased in 2023 to 1.93, suggesting a potential increase in debt usage during that period. In 2024, the ratio softened to 1.75, still above the 2021 and 2022 levels but lower than the peak in 2023. Overall, the company should continue to monitor its financial leverage ratio to ensure an optimal capital structure that balances financial risk and growth opportunities.
Peer comparison
Dec 31, 2024