National HealthCare Corporation (NHC)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,524,430 | 1,310,800 | 1,275,450 | 1,403,400 | 1,362,130 |
| Total stockholders’ equity | US$ in thousands | 980,161 | 908,752 | 874,276 | 903,004 | 795,177 |
| Financial leverage ratio | 1.56 | 1.44 | 1.46 | 1.55 | 1.71 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,524,430K ÷ $980,161K
= 1.56
The financial leverage ratio for National HealthCare Corporation has shown a declining trend over the past five years, decreasing from 1.71 in December 2020 to 1.56 in December 2024. This indicates that the company has been gradually reducing its reliance on debt financing relative to its equity. A decreasing financial leverage ratio suggests a stronger financial position and less risk of insolvency, as the company is using less debt to support its operations and growth. However, it's important to note that a financial leverage ratio of 1.56 still indicates that the company has some level of debt in its capital structure. Overall, the decreasing trend in the financial leverage ratio reflects a prudent approach by National HealthCare Corporation towards managing its financial risk and capital structure.
Peer comparison
Dec 31, 2024