Pacira Pharmaceuticals Inc (PCRX)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,574,390 | 1,681,200 | 2,075,350 | 1,274,510 | 831,065 |
| Total stockholders’ equity | US$ in thousands | 870,130 | 775,010 | 730,408 | 619,688 | 354,944 |
| Financial leverage ratio | 1.81 | 2.17 | 2.84 | 2.06 | 2.34 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,574,390K ÷ $870,130K
= 1.81
The financial leverage ratio of Pacira BioSciences Inc has fluctuated over the past five years, ranging from 1.81 to 2.84. This ratio indicates the level of the company's debt relative to its equity. A higher financial leverage ratio suggests that the company is relying more on debt financing, which can amplify returns but also increase financial risk.
In 2021, the company had a relatively high financial leverage ratio of 2.84, indicating a significant reliance on debt to finance its operations or growth initiatives. Subsequently, in 2022 and 2019, the ratio decreased to 2.17 and 2.34, respectively, suggesting a moderation in the company's debt level compared to the previous year.
On the other hand, in 2020 and 2023, the financial leverage ratio declined to 2.06 and 1.81, respectively. This reduction may indicate a shift towards a more conservative capital structure with less reliance on debt financing. It is important for investors and analysts to monitor changes in the financial leverage ratio over time to assess the company's ability to manage its debt obligations and financial risk effectively.
Peer comparison
Dec 31, 2023