Molina Healthcare Inc (MOH)

Financial leverage ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Total assets	US$ in thousands	15,630,000	15,758,000	15,185,000	15,513,000	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
Total stockholders’ equity	US$ in thousands	4,496,000	4,770,000	4,843,000	4,493,000	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
Financial leverage ratio		3.48	3.30	3.14	3.45	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

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $15,630,000K ÷ $4,496,000K
= 3.48

The financial leverage ratio of Molina Healthcare Inc has shown a decreasing trend over the period from March 31, 2020, to December 31, 2024, indicating an improvement in the company's ability to meet its financial obligations using debt financing. The ratio started at 4.33 on March 31, 2020, and reached its lowest point of 3.14 on June 30, 2024.

However, there was a slight increase to 3.48 on December 31, 2024. This suggests that the company may have taken on slightly more debt in the most recent period compared to the previous periods. Overall, a decreasing financial leverage ratio can be a positive sign as it indicates a lower dependency on debt for financing, which can reduce financial risks and improve the company's financial stability.