Owens & Minor Inc (OMI)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,093,320 | 5,386,280 | 3,536,550 | 3,335,640 | 3,643,080 |
| Total stockholders’ equity | US$ in thousands | 924,166 | 945,604 | 938,501 | 712,054 | 462,154 |
| Financial leverage ratio | 5.51 | 5.70 | 3.77 | 4.68 | 7.88 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,093,320K ÷ $924,166K
= 5.51
The financial leverage ratio of Owens & Minor, Inc. has shown fluctuating trends over the past five years, ranging from 3.77 to 7.88. A higher financial leverage ratio indicates a higher degree of financial leverage or debt utilization by the company to finance its operations and growth.
In 2023, the financial leverage ratio decreased to 5.51 from 5.70 in 2022, suggesting a slight improvement in the company's leverage position. Despite this improvement, the ratio remains relatively high, indicating a substantial reliance on debt financing.
Comparing the current ratio to previous years, it is evident that Owens & Minor, Inc. has historically operated with a high level of leverage, which can potentially amplify returns but also increase financial risk. Investors and stakeholders should closely monitor the company's debt levels and repayment capabilities to assess its financial health and sustainability in the long term.
Peer comparison
Dec 31, 2023