Option Care Health Inc (OPCH)
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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,217,040 | 3,243,620 | 3,320,900 | 3,130,400 | 3,112,940 | 3,073,260 | 2,985,910 | 2,878,280 | 2,790,920 | 2,786,140 | 2,718,760 | 2,640,470 | 2,647,440 | 2,668,490 | 2,626,260 | 2,612,530 | 2,589,550 | 2,581,920 | 600,577 | 597,190 |
| Total stockholders’ equity | US$ in thousands | 1,421,670 | 1,440,080 | 1,475,380 | 1,350,220 | 1,386,100 | 1,337,340 | 1,284,990 | 1,221,760 | 1,175,890 | 1,097,480 | 1,056,610 | 1,018,080 | 1,015,720 | 993,496 | 867,966 | 870,493 | 906,827 | 921,682 | 584,146 | 597,171 |
| Financial leverage ratio | 2.26 | 2.25 | 2.25 | 2.32 | 2.25 | 2.30 | 2.32 | 2.36 | 2.37 | 2.54 | 2.57 | 2.59 | 2.61 | 2.69 | 3.03 | 3.00 | 2.86 | 2.80 | 1.03 | 1.00 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,217,040K ÷ $1,421,670K
= 2.26
Option Care Health Inc.'s financial leverage ratio has shown some fluctuation over the past eight quarters, ranging from 2.25 to 2.36. The ratio indicates that the company maintains a higher level of debt relative to its equity.
A financial leverage ratio of 2.26 in Q4 2023 suggests that for every dollar of equity, the company has $2.26 of debt. This implies that a significant portion of the company's assets are financed through debt.
The trend of the financial leverage ratio hovering around 2.25 to 2.36 indicates relative stability in the company's capital structure. However, with a value of 2.32 in Q1 2023, there was a slight increase in leverage compared to the previous quarters.
Overall, a consistently high financial leverage ratio may indicate financial risk as the company has a higher reliance on debt financing, which could lead to increased interest payments and potentially impact the company's financial stability during challenging economic conditions. Monitoring this ratio over time can provide insights into Option Care Health Inc.'s financial risk management strategy and its ability to meet debt obligations.
Peer comparison
Dec 31, 2023