Proto Labs Inc (PRLB)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 772,353 | 802,168 | 928,582 | 744,204 | 673,667 |
| Total stockholders’ equity | US$ in thousands | 695,295 | 697,648 | 828,493 | 644,356 | 585,790 |
| Financial leverage ratio | 1.11 | 1.15 | 1.12 | 1.15 | 1.15 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $772,353K ÷ $695,295K
= 1.11
The financial leverage ratio for Proto Labs Inc has shown some fluctuations over the past five years. The ratio was at 1.15 for December 31, 2019, 2020, and 2022, indicating a consistent level of leverage during those years. However, there was a slight decrease to 1.12 at the end of 2021 before increasing again to 1.15 by the end of 2022.
The financial leverage ratio for December 31, 2023, further declined to 1.11, suggesting a decrease in the company's reliance on debt to finance its operations and investments compared to the previous year. A lower financial leverage ratio may indicate a stronger financial position and lower risk of default, but it could also imply missed opportunities for potential growth if not utilized efficiently.
Overall, Proto Labs Inc's financial leverage ratio has shown variability over the years, with the recent decrease potentially reflecting a conservative approach to managing its capital structure. Further analysis of the company's overall financial health and strategic decisions would provide additional insights into the implications of this trend.
Peer comparison
Dec 31, 2023