Envista Holdings Corp (NVST)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,605,100 | 6,587,000 | 6,574,200 | 6,876,000 | 6,158,300 |
| Total stockholders’ equity | US$ in thousands | 4,173,900 | 4,206,900 | 4,057,600 | 3,720,600 | 3,540,200 |
| Financial leverage ratio | 1.58 | 1.57 | 1.62 | 1.85 | 1.74 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,605,100K ÷ $4,173,900K
= 1.58
The financial leverage ratio of Envista Holdings Corp has fluctuated over the past five years, with a decreasing trend from 2019 to 2022, followed by a slight increase in 2023. The ratio was 1.74 in 2019, then increased to 1.85 in 2020, before declining to 1.62 in 2021 and further to 1.57 in 2022. In 2023, there was a slight uptick to 1.58.
A financial leverage ratio above 1 indicates that the company relies more on debt financing than equity financing to support its operations and assets. The trend observed from 2019 to 2022 suggests that Envista Holdings Corp may have adjusted its capital structure to reduce its reliance on debt, which could have been a strategic decision to lower its financial risk and improve financial stability.
However, the increase in the financial leverage ratio in 2023 could indicate a potential shift towards more debt financing, which may suggest a different strategic direction or investment activity undertaken by the company during that year.
Overall, the fluctuations in the financial leverage ratio of Envista Holdings Corp over the past five years demonstrate the company's ability to adapt its capital structure in response to changing market conditions and strategic objectives.
Peer comparison
Dec 31, 2023