Option Care Health Inc (OPCH)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,421,740 | 3,217,040 | 3,112,940 | 2,790,920 | 2,647,440 |
| Total stockholders’ equity | US$ in thousands | 1,404,240 | 1,421,670 | 1,386,100 | 1,175,890 | 1,015,720 |
| Financial leverage ratio | 2.44 | 2.26 | 2.25 | 2.37 | 2.61 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,421,740K ÷ $1,404,240K
= 2.44
Option Care Health Inc's financial leverage ratio has been showing a decreasing trend over the past few years. Starting at 2.61 in December 2020, the ratio has gradually decreased to 2.37 in December 2021, further declining to 2.25 in December 2022, ticking up slightly to 2.26 in December 2023, and then increasing to 2.44 in December 2024.
This trend indicates that the company has been reducing its reliance on debt to finance its operations, which is generally viewed positively by investors and creditors as it lowers the financial risk associated with higher levels of debt. However, the slight uptick in the ratio in 2024 suggests that the company may have increased its borrowing relative to its equity during that period.
Overall, Option Care Health Inc's financial leverage ratio has fluctuated within a moderate range, reflecting a balanced approach to capital structure management. Further analysis of the company's debt levels, cash flow, and profitability trends would provide additional insights into its financial health and performance.
Peer comparison
Dec 31, 2024