Molina Healthcare Inc (MOH)
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 | 14,892,000 | 14,870,000 | 13,661,000 | 13,371,000 | 12,314,000 | 12,793,000 | 12,572,000 | 12,360,000 | 12,209,000 | 11,033,000 | 10,530,000 | 9,950,000 | 9,532,000 | 7,881,000 | 7,876,000 | 7,129,000 | 6,787,000 | 6,701,000 | 6,690,000 | 7,579,000 |
| Total stockholders’ equity | US$ in thousands | 4,215,000 | 3,879,000 | 3,621,000 | 3,288,000 | 2,964,000 | 3,041,000 | 2,830,000 | 2,794,000 | 2,630,000 | 2,518,000 | 2,370,000 | 2,164,000 | 2,096,000 | 2,201,000 | 1,996,000 | 1,647,000 | 1,960,000 | 1,831,000 | 1,736,000 | 1,835,000 |
| Financial leverage ratio | 3.53 | 3.83 | 3.77 | 4.07 | 4.15 | 4.21 | 4.44 | 4.42 | 4.64 | 4.38 | 4.44 | 4.60 | 4.55 | 3.58 | 3.95 | 4.33 | 3.46 | 3.66 | 3.85 | 4.13 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $14,892,000K ÷ $4,215,000K
= 3.53
The financial leverage ratio for Molina Healthcare Inc has been fluctuating over the past eight quarters. The ratio measures the company's use of debt to finance its operations and indicates the level of financial risk. A higher ratio implies that the company relies more on debt financing, which can potentially lead to higher interest expenses and financial vulnerability.
From the data provided, we observe that the financial leverage ratio has decreased from 4.15 in Q4 2022 to 3.53 in Q4 2023, indicating a reduction in the company's reliance on debt financing over this period. However, the ratio increased in Q3 and Q1 2023, reflecting a higher utilization of debt during those quarters.
It is essential for stakeholders to monitor the financial leverage ratio closely as it provides insights into the company's capital structure and risk profile. A consistently high or increasing ratio may signal potential financial difficulties, while a consistently low or declining ratio may suggest a more conservative approach to financing. Further analysis and comparison with industry benchmarks would provide a more comprehensive evaluation of Molina Healthcare Inc's financial leverage position.
Peer comparison
Dec 31, 2023