Progyny Inc (PGNY)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 756,620 | 542,986 | 358,065 | 253,927 | 150,434 |
| Total stockholders’ equity | US$ in thousands | 553,429 | 376,968 | 251,822 | 166,947 | 114,271 |
| Financial leverage ratio | 1.37 | 1.44 | 1.42 | 1.52 | 1.32 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $756,620K ÷ $553,429K
= 1.37
The financial leverage ratio of Progyny Inc has been relatively stable over the past five years, ranging from 1.32 to 1.52. This ratio indicates the extent to which the company relies on debt to finance its operations and growth. A higher financial leverage ratio suggests that a greater proportion of the company's assets are funded by debt rather than equity.
In the case of Progyny Inc, the decreasing trend in the financial leverage ratio from 1.52 in 2020 to 1.37 in 2023 may indicate a shift towards a more conservative capital structure with a reduced reliance on debt financing. This trend could be a positive signal to investors and creditors, as lower leverage typically translates to lower financial risk and a more stable financial position.
However, it is important to consider the industry norms and overall economic conditions when evaluating the financial leverage ratio. A thorough analysis of the company's debt structure, repayment terms, and interest coverage ratio would provide a more complete understanding of Progyny Inc's financial leverage and its implications for the company's performance and stability.
Peer comparison
Dec 31, 2023