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.