Regeneron Pharmaceuticals Inc (REGN)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	33,080,200	29,214,500	25,434,800	17,163,300	14,805,200
Total stockholders’ equity	US$ in thousands	25,973,100	22,664,000	18,768,800	11,025,300	11,089,700
Financial leverage ratio		1.27	1.29	1.36	1.56	1.34

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $33,080,200K ÷ $25,973,100K
= 1.27

The financial leverage ratio of Regeneron Pharmaceuticals, Inc. has exhibited fluctuations over the past five years. The ratio decreased from 1.56 in 2020 to 1.27 in 2023, indicating a reduction in reliance on debt financing relative to equity for the company's operations. In 2021, the ratio was 1.36, slightly higher than in the following years.

The downward trend suggests that Regeneron Pharmaceuticals, Inc. has been successful in managing its debt levels and optimizing its capital structure. A lower financial leverage ratio generally signifies a lower financial risk for the company, as it indicates a lesser degree of reliance on debt to fund its operations and investments.

However, it is important to note that a too low financial leverage ratio may also imply underutilization of debt for potential growth opportunities. Thus, the company should continue to assess its capital structure to strike a balance between financial risk and growth objectives.