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