Select Medical Holdings (SEM)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 7,689,630 | 7,665,290 | 7,360,170 | 7,655,400 | 7,340,290 |
| Total stockholders’ equity | US$ in thousands | 1,288,300 | 1,121,920 | 1,109,980 | 1,060,480 | 770,972 |
| Financial leverage ratio | 5.97 | 6.83 | 6.63 | 7.22 | 9.52 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,689,630K ÷ $1,288,300K
= 5.97
The financial leverage ratio of Select Medical Holdings Corporation has shown a decreasing trend over the past five years. The ratio stood at 5.97 in 2023, compared to higher levels of 6.83 in 2022, 6.63 in 2021, 7.22 in 2020, and 9.52 in 2019. This indicates that the company has been able to reduce its reliance on debt to finance its operations and assets over the years. A decreasing financial leverage ratio can signal improved financial stability and lower risk as the company relies less on borrowed funds. It may also indicate that the company has been able to generate sufficient profits to support its operations without needing excessive debt financing. Overall, a declining trend in the financial leverage ratio suggests a positive shift towards a more balanced capital structure for Select Medical Holdings Corporation.
Peer comparison
Dec 31, 2023