Repligen Corporation (RGEN)

Financial leverage ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Total assets	US$ in thousands	2,829,670	2,830,640	2,861,920	2,849,270	2,824,410	2,514,130	2,549,000	2,538,230	2,524,660	2,462,530	2,444,920	2,383,820	2,358,350	2,241,400	2,015,960	1,927,330	1,902,890	1,476,320	1,442,040	1,406,480
Total stockholders’ equity	US$ in thousands	2,016,690	2,016,690	1,986,360	1,970,600	1,971,200	464,337	446,165	426,101	397,272	1,835,110	1,805,360	1,766,400	1,750,070	1,715,260	131,452	95,219	65,769	1,124,870	1,100,030	1,069,760
Financial leverage ratio		1.40	1.40	1.44	1.45	1.43	5.41	5.71	5.96	6.35	1.34	1.35	1.35	1.35	1.31	15.34	20.24	28.93	1.31	1.31	1.31

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,829,670K ÷ $2,016,690K
= 1.40

The financial leverage ratio measures the extent to which a company relies on debt to finance its operations and growth. Looking at the historical data of Repligen Corporation, we see a significant increase in the financial leverage ratio from the end of 2020 to the first half of 2021, peaking at 28.93 in December 31, 2020. This sharp increase may indicate a substantial increase in debt relative to equity during that period, which could be a concern as it suggests higher financial risk and potential financial distress.

However, the financial leverage ratio gradually decreased after the peak in 2020, reaching relatively stable levels around 1.3 to 1.4 from 2021 to 2024. This demonstrates that Repligen Corporation managed to bring its leverage back to more sustainable levels and maintained a balanced mix of debt and equity in its capital structure during this period.

Overall, the trend in the financial leverage ratio of Repligen Corporation indicates a period of heightened leverage followed by a successful deleveraging effort to return to a more stable financial position. Monitoring this ratio over time can provide insights into the company's capital structure management and financial risk profile.