Protagonist Therapeutics Inc (PTGX)

Financial leverage ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Total assets US$ in thousands 357,951 247,928 347,695 324,468 154,917
Total stockholders’ equity US$ in thousands 336,677 215,608 300,021 279,606 79,964
Financial leverage ratio 1.06 1.15 1.16 1.16 1.94

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $357,951K ÷ $336,677K
= 1.06

The financial leverage ratio measures the extent to which a company relies on debt financing versus equity financing to support its operations and growth. From 2019 to 2023, Protagonist Therapeutics Inc has shown a decreasing trend in its financial leverage ratio, moving from 1.94 in 2019 to 1.06 in 2023. This suggests that the company has been reducing its dependence on debt and increasing its reliance on equity to fund its activities over the years.

A financial leverage ratio of 1 indicates an equal mix of debt and equity in the company's capital structure, while ratios above 1 indicate a higher proportion of debt relative to equity. Therefore, Protagonist Therapeutics Inc's financial leverage ratio of 1.06 in 2023 indicates a slightly higher reliance on equity compared to debt.

Overall, the decreasing trend in the financial leverage ratio shows that Protagonist Therapeutics Inc has been managing its debt levels effectively and gradually shifting towards a more balanced capital structure with a greater emphasis on equity financing. This strategy can help improve the company's financial stability and reduce the risks associated with high debt levels.


Peer comparison

Dec 31, 2023