MaxLinear Inc (MXL)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,080,260 | 1,180,020 | 1,050,380 | 1,022,440 | 705,791 |
| Total stockholders’ equity | US$ in thousands | 686,265 | 676,385 | 489,198 | 391,117 | 414,920 |
| Financial leverage ratio | 1.57 | 1.74 | 2.15 | 2.61 | 1.70 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,080,260K ÷ $686,265K
= 1.57
The financial leverage ratio of MaxLinear Inc has shown a declining trend from 2019 to 2023. The ratio stood at 1.70 in 2019, increased to 2.61 in 2020, and then decreased consistently to 1.57 in 2023. This indicates that the company's reliance on debt to finance its operations has been decreasing over the years. A lower financial leverage ratio generally signifies lower financial risk and greater financial stability, as the company is relying less on borrowed funds. This trend suggests that MaxLinear Inc has been effectively managing its debt levels, which may be viewed positively by investors and creditors. However, it is also important to consider the impact of this decreasing leverage on the company's ability to generate returns for shareholders and fund future growth initiatives.
Peer comparison
Dec 31, 2023