Impinj Inc (PI)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 489,080 | 359,409 | 349,737 | 315,537 | 207,616 |
| Total stockholders’ equity | US$ in thousands | 149,864 | 34,131 | 15,591 | -11,076 | 109,119 |
| Financial leverage ratio | 3.26 | 10.53 | 22.43 | — | 1.90 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $489,080K ÷ $149,864K
= 3.26
The financial leverage ratio measures the extent to which a company relies on debt to finance its operations. Looking at the data provided for Impinj Inc, we observe the following trend:
1. As of December 31, 2020, the financial leverage ratio stood at 1.90, indicating that the company had a moderate level of debt in its capital structure compared to its equity.
2. Interestingly, the ratio for December 31, 2021, is not available ("—"), which suggests that there may have been data limitations or changes in the reporting structure during that period.
3. The financial leverage ratio increased significantly to 22.43 as of December 31, 2022, signaling a substantial increase in the company's reliance on debt. Such a high ratio may indicate higher financial risk and potential concerns about the company's ability to meet its debt obligations.
4. By December 31, 2023, the financial leverage ratio decreased to 10.53, which, although lower than the previous year, still indicates a relatively high level of debt in the capital structure.
5. Finally, as of December 31, 2024, the financial leverage ratio stands at 3.26, showing a further decrease in the company's reliance on debt compared to the previous year.
In conclusion, the financial leverage ratio for Impinj Inc has shown fluctuations over the years, with a notable spike in 2022 followed by a gradual decline. It is important for investors and stakeholders to closely monitor these changes in leverage ratios to assess the company's financial health and risk profile.
Peer comparison
Dec 31, 2024