National HealthCare Corporation (NHC)
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 | 1,524,430 | 1,562,710 | 1,339,700 | 1,319,640 | 1,310,800 | 1,281,910 | 1,280,680 | 1,265,350 | 1,275,450 | 1,295,560 | 1,350,470 | 1,357,010 | 1,403,400 | 1,415,800 | 1,457,370 | 1,355,310 | 1,362,130 | 1,338,780 | 1,335,240 | 1,256,310 |
| Total stockholders’ equity | US$ in thousands | 980,161 | 983,468 | 945,817 | 924,748 | 908,752 | 885,171 | 883,922 | 877,102 | 874,276 | 877,311 | 897,915 | 905,319 | 903,004 | 895,677 | 906,841 | 807,064 | 795,177 | 773,960 | 768,052 | 742,562 |
| Financial leverage ratio | 1.56 | 1.59 | 1.42 | 1.43 | 1.44 | 1.45 | 1.45 | 1.44 | 1.46 | 1.48 | 1.50 | 1.50 | 1.55 | 1.58 | 1.61 | 1.68 | 1.71 | 1.73 | 1.74 | 1.69 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,524,430K ÷ $980,161K
= 1.56
The financial leverage ratio of National HealthCare Corporation has been showing a declining trend over the past few years, from 1.69 as of March 31, 2020, to 1.56 as of December 31, 2024. This indicates that the company's reliance on debt to finance its operations has been decreasing over time. A decreasing trend in the financial leverage ratio can be seen as a positive sign as it suggests that the company is becoming less leveraged and therefore less risky. However, it is important to consider the reasons behind this trend and evaluate whether it is a strategic decision by the company or if it may have implications for the company's growth and profitability in the long term.
Peer comparison
Dec 31, 2024