National HealthCare Corporation (NHC)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,310,800 | 1,275,450 | 1,403,400 | 1,362,130 | 1,286,650 |
| Total stockholders’ equity | US$ in thousands | 908,752 | 874,276 | 903,004 | 795,177 | 778,593 |
| Financial leverage ratio | 1.44 | 1.46 | 1.55 | 1.71 | 1.65 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,310,800K ÷ $908,752K
= 1.44
The financial leverage ratio of National Healthcare Corp. has been fluctuating over the past five years. The ratio was 1.44 in 2023, slightly lower than the previous year's ratio of 1.46. In 2021 and 2020, the ratio decreased further to 1.55 and 1.71, respectively, indicating a decreasing trend in financial leverage. However, in 2019, the ratio was 1.65, showing a slight increase compared to 2023 but lower than 2020 and 2021.
Overall, the trend in the financial leverage ratio suggests that National Healthcare Corp. has been gradually reducing its reliance on debt to finance its operations. This can be a positive indicator of financial stability and lower risk, as lower financial leverage ratios indicate that the company is relying less on debt to fund its assets and operations. Further analysis of the company's financial health and performance would be necessary to fully assess the implications of these changes in the financial leverage ratio.
Peer comparison
Dec 31, 2023