Envista Holdings Corp (NVST)
Financial leverage ratio
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,605,100 | 6,683,800 | 6,607,200 | 6,575,000 | 6,587,000 | 6,411,900 | 6,461,000 | 6,572,300 | 6,574,200 | 6,562,000 | 6,481,300 | 6,321,900 | 6,876,000 | 6,605,700 | 6,665,200 | 6,240,900 | 6,158,300 |
| Total stockholders’ equity | US$ in thousands | 4,173,900 | 4,293,200 | 4,311,000 | 4,279,000 | 4,206,900 | 3,957,900 | 4,016,000 | 4,030,900 | 4,057,600 | 3,946,700 | 3,868,500 | 3,746,900 | 3,720,600 | 3,557,600 | 3,493,400 | 3,483,700 | 3,540,200 |
| Financial leverage ratio | 1.58 | 1.56 | 1.53 | 1.54 | 1.57 | 1.62 | 1.61 | 1.63 | 1.62 | 1.66 | 1.68 | 1.69 | 1.85 | 1.86 | 1.91 | 1.79 | 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 shown a fluctuating trend over the past eight quarters. The ratio has ranged from a low of 1.53 in Q2 2023 to a high of 1.63 in Q1 2022. This indicates that the company has been utilizing a combination of debt and equity to finance its operations and investments.
Generally, a higher financial leverage ratio suggests that a company relies more on debt to fund its operations, which can potentially amplify returns but also increases financial risk. Conversely, a lower ratio indicates a more conservative financing approach with a greater reliance on equity.
Envista Holdings Corp's financial leverage ratio has remained relatively stable around the 1.55 to 1.63 range, with slight fluctuations quarter to quarter. This indicates a moderate level of financial leverage, suggesting a balanced approach to capital structure. It is important for stakeholders to monitor this ratio over time to assess the company's ability to manage its debt levels effectively and sustain financial stability.
Peer comparison
Dec 31, 2023