Myriad Genetics Inc (MYGN)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Jun 30, 2020	Jun 30, 2019
Total assets	US$ in thousands	1,146,500	1,198,700	1,320,700	1,404,600	1,562,700
Total stockholders’ equity	US$ in thousands	783,200	885,800	967,800	918,200	1,088,900
Financial leverage ratio		1.46	1.35	1.36	1.53	1.44

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,146,500K ÷ $783,200K
= 1.46

The financial leverage ratio for Myriad Genetics, Inc. has shown some fluctuations over the past five years. The ratio increased from 1.44 in June 2019 to 1.53 in June 2020, indicating higher financial leverage during that period. However, there was a subsequent decrease in the financial leverage ratio to 1.36 in December 2021 before increasing again to 1.46 in December 2023.

A financial leverage ratio above 1 suggests that the company has more debt in its capital structure compared to equity. This can amplify returns to equity investors in good times but also increase financial risk due to higher interest payments and potential financial distress in challenging economic conditions. In this case, the fluctuating nature of the financial leverage ratio indicates changes in the company's capital structure and debt levels over the years, which could be a result of various strategic decisions and business circumstances.

It would be important for stakeholders to monitor the trend in the financial leverage ratio going forward to assess the company's risk profile and financial health.