Penumbra Inc (PEN)

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	1,556,300	1,468,380	1,432,530	1,395,300	1,370,890	1,321,600	1,327,900	1,301,570	1,244,250	973,241	480,750	840,824	822,983	810,303	780,200	664,240	665,901	614,170	585,109	568,789
Total stockholders’ equity	US$ in thousands	1,178,940	1,104,140	1,066,540	1,024,470	998,858	973,752	970,015	959,302	953,927	690,939	673,376	655,091	641,498	622,406	624,794	488,933	485,892	467,332	454,091	436,732
Financial leverage ratio		1.32	1.33	1.34	1.36	1.37	1.36	1.37	1.36	1.30	1.41	0.71	1.28	1.28	1.30	1.25	1.36	1.37	1.31	1.29	1.30

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,556,300K ÷ $1,178,940K
= 1.32

The financial leverage ratio of Penumbra Inc has been relatively stable over the past eight quarters, ranging from 1.32 to 1.37. This indicates that the company's capital structure is primarily funded through debt rather than equity. A financial leverage ratio above 1 suggests that the company has more debt than equity in its capital structure, indicating a higher level of financial risk.

Although the ratio has shown some fluctuation, it has remained within a fairly narrow range, which may indicate a consistent approach to managing the company's debt levels. It's important to note that a higher financial leverage ratio could potentially amplify returns in a favorable business environment, but it also increases the company's financial risk, especially in times of economic downturn or financial instability.

Overall, Penumbra Inc's financial leverage ratio suggests a moderate level of leverage in its capital structure, indicating a balanced approach to financing its operations through debt. Investors and stakeholders should continue to monitor this ratio to ensure the company maintains a sustainable level of leverage that supports its growth and financial stability.